Counterfeit Cigarette Papers—Guilty Pleas

Three men from Dearborn, Michigan, have pleaded guilty to conspiracy, trafficking in counterfeit goods, money laundering, and making false statements.^[1] Tarek Makki and his cousin Adham Mackie, pleaded guilty all the charges, and Tarek’s brother pleaded guilty to all but the trafficking charge.^[2] The men are accused of manufacturing counterfeit “Zig-Zag” brand cigarette papers, smuggling them into the United States, and distributing them throughout the country.

Conspiracy
We have previously discussed conspiracy here.

Trafficking in Counterfeit Goods
Under 18 U.S.C. § 2320, it is a crime for a person to intentionally traffic in goods, knowing that the mark on the goods is counterfeit.^[3]

The punishment for a violation of section 2320 is a fine of not more than US$2 million, imprisoned for up to 10 years, or both.^[4]

Money Laundering
Money Laundering is covered by 18 U.S.C. § 1956, which makes it a crime for a person, knowing that the property involved in a financial transaction represents the proceeds of some form of unlawful activity, conduct such a financial transaction which in fact involves the proceeds of “specified unlawful activity” with the intent to promote the carrying on of specified unlawful activity.^[5] In this case, “specified unlawful activity” includes trafficking in counterfeit goods.^[6]

The punishment for violating this section is a fine of not more than $500,000 or twice the value of the property involved in the transaction (whichever is greater), imprisonment for up to 20 years, or both.^[7]

Making False Statements
Under 18 U.S.C. § 1001, it is a crime for a person to make a materially false statement in any matter within the jurisdiction of the judicial branch of the Government of the United States.^[8]

Violating section 1001 can be punished by a fine, imprisonment for up to five years, or both.^[9]

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[1] Three Men Plead Guilty in Alleged Counterfeit Cigarette Paper Ring, Detroit Free Press, Oct. 6, 2005, available here.
[2] Id.
[3] 18 U.S.C. § 2320(a).
[4] Id.
[5] Id. § 1956(a)(1)(A)(i).
[6] Id. § 1956(c)(7).
[7] Id. § 1956(a)(1).
[8] Id. § 1001(a)(2).
[9] Id. § 1001(a).