U.S. Attorney’s Office/District of Maryland
December 11, 2013
Criminal Proceeds Laundered Through Eastern Europe
BALTIMORE—A federal grand jury has indicted 11 individuals on charges related to a conspiracy to traffic more than $6.6 million in contraband cigarettes. The indictment was returned on December 3, 2013, and unsealed today upon the arrest of eight defendants and the execution of 12 search warrants.
Charged in the indictment are:
- Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 41, of Owings Mills, Maryland
- Zarakh Yelizarov, age 51, of Baltimore, Maryland
- Salim Yusufov, age 43, of Baltimore
- Artur Zakharyan, age 52, of Owings Mills
- Ilgar Rakhamimov, age 39, of Owings Mills
- Timur Yusufov, age 35, of Baltimore
- Nikolay Zakharyan, age 23, of Owings Mills
- Adam Azerman, age 59, of Pikesville
- Shamil Novakhov, age 58, of Brooklyn, New York
- Yuliya Rakhamimov, age 33, of Owings Mills
- Ruslan Ykiew, age 38, of Brooklyn, New York
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
“The indictment alleges that the defendants participated in a criminal conspiracy to traffic in illegal drugs and contraband cigarettes and launder the criminal proceeds through wire transfers to Eastern European countries,” said U.S. Attorney Rod J. Rosenstein.
“FDA’s regulatory standards are designed to ensure the safety and quality of drugs distributed to American consumers,” said Special Agent inCharge Antoinette V. Henry, FDA’s Office of Criminal Investigations. “We will continue to work with our law enforcement partners to investigate all persons who disregard regulatory requirements and jeopardize the public health by participating in the distribution of unapproved products.”
The 42-count indictment alleges that the defendants are family members and associates who primarily live in northwest Baltimore County and New York City and operate businesses in the Pikesville area of Baltimore County and in Baltimore City, including Healthway Pharmacy and Europe Restaurant. In addition to trafficking in contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid, the indictment alleges that some of the defendants also have distributed oxycodone, sold drug samples, and laundered money.
According to the indictment, the cigarette tax in Maryland is $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York is $4.35 per package of cigarettes ($43.50 per carton of cigarettes). Specifically, the indictment alleges that since December 2011, Elmar Rakhamimov has paid approximately $5.4 million for contraband cigarettes, which were received and stored at his residence in Maryland. The conspirators then transported the cigarettes to the New York area and resold them for a profit. According to the indictment, Elmar Rakhamimov, Artur Zakharyan, and Ilgar Rakhamimov acted as a broker, middleman, and distributor of contraband cigarettes, and Nikolay Zakharyan, Adam Azerman, Shamil Novakhov, and Ruslan Ykiew transported contraband cigarettes to New York and other cities for resale. Elmar Rakhamimov and Yuliya Rakhamimov sometimes paid for the contraband cigarettes with prescription and counterfeit prescription drugs, as well as other controlled substances. Elmar Rakhamimov and other conspirators used Rakhamimov’s residence and his restaurant to conduct the illegal transactions of contraband cigarettes and drugs. The indictment alleges that Salim Yusufov, who owned Healthway Pharmacy, received more than $81,000 in kickbacks for the contraband cigarette transactions.
Further, the indictment alleges that Elmar Rakhamimov and Zarakh Yelizarov conducted financial transactions involving the proceeds of the contraband cigarette sales, in order to conceal the nature, source, ownership, and control of the proceeds of the illegal activity. Specifically, the indictment alleges that Rakhamimov and Yelizarov conducted wire transfers of cash from bank accounts they controlled in Latvia, Cyprus, and Estonia.
In a separate indictment, Salim Yusufov, who owned and operated Healthway Pharmacy in Pikesville, is charged with illegally providing unapproved prescription drugs from Germany and Eastern Europe and sold them to customers. According to the indictment, Corvalol, also referred to Corvalolum and Valocordin, is not approved by the FDA for distribution in the United States, although it is sold in Eastern European countries, where it is used to treat elevated blood pressure and as a tranquilizer and sedative. Valocordin and Corvalol contain large amounts of phenobarbital, a prescription drug regulated by the FDA. The indictment alleges that from July 23, 2010 through July 14, 2011, Yusufov imported and distributed Valocordin, dispensing the drug without a prescription.
All the defendants except Yuliya Rakhamimov face a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes and for each of 18 counts of trafficking in contraband cigarettes. Elmar and Yuliya Rakhamimov face a maximum of 20 years in prison for each of 10 counts of distribution of oxycodone; and Elmar Rakhamimov and Zarakh Yelizarov face a maximum of 20 years in prison for each of 12 counts of money laundering. Elmar Rakhamimov also faces 10 years in prison for sale of a drug sample.
Salim Yusufov also faces a maximum of three years in prison for each of five counts of receipt and delivery of misbranded drugs and for each of five counts of dispensing prescription drugs without a prescription.
Six of the defendants are scheduled to have initial appearances this afternoon in U.S. District Court in Baltimore. Shamil Novakhov and Ruslan Ykiew were arrested in New York and will have initial appearances this afternoon in the U.S. District Court for the Eastern District of New York.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration-Office of Criminal Investigations, and Office of Inspector General of the Department of Health and Human Services-Office of Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.