RENO - - Daniel
G. Bogden, United States Attorney for the District of Nevada, Tim
Landrum, Assistant Special Agent-in-Charge of the Drug Enforcement
Administration (DEA) for Nevada, and Byram Tichenor, Special Agent-in-Charge
of the Internal Revenue Service Criminal Investigation Division
(IRS-CID) for Nevada, announced that LOKMAN HOSSAIN BABU was sentenced
today in federal court in Reno to seven years in prison for his
convictions for money laundering and distributing chemicals used
to manufacture methamphetamine. The sentence was handed down by
U.S. District Court Judge David W. Hagen.
In an Organized Crime Drug Enforcement Task Force investigation
known as "Operation Pill-Box", law enforcement investigators
targeted businesses in northern Nevada that were selling large quantities
of pseudoephedrine, a precursor chemical used to manufacture the
illegal drug, methamphetamine, commonly known as speed or crank.
Pseudoephedrine, is widely used in the production of methamphetamine
because of its ready availability in over-the-counter cold and allergy
products. Under federal law, pseudoephedrine is classified as a
"List I Chemical" meaning that it is a chemical used in
manufacturing controlled substances. Under both federal and Nevada
law, it is illegal to possess or distribute pseudoephedrine except
when packaged in small quantities for over-the-counter sales.
From September 1, 1998, until August 3, 2000, BABU repeatedly sold
hundreds of cases of pseudoephedrine to customers knowing that the
pseudoephedrine was to be used for the manufacture of methamphetamine.
BABU sold the cases of pseudoephedrine from his three convenience
stores in Reno and Sparks: B&B Mini-Mart, Reno Mini-Mart, and
Sparks Mini-Mart. Each case of pseudoephedrine contained 144 bottles.
Each bottle contained 60 to 120, 60 milligram tablets of pseudoephedrine.
Between March 1999 and February 2000, BABU sold cases of pseudoephedrine
to a DEA undercover agent. On August 3, 2000, BABU was arrested
and search warrants were executed at his residence and the three
businesses. DEA agents seized approximately 9,800 grams of pseudoephedrine.
IRS-CID agents also executed seizure warrants on BABU's bank accounts,
vehicles, a hotel, and vacant lot. During the year of 1999, BABU
laundered hundreds of thousands of dollars from unlawful sales of
pseudoephedrine, making cash deposits into several personal bank
accounts in dollar amounts less than $10,000 to avoid filing currency
transaction reports with the banks.
In addition to the period of imprisonment, BABU was ordered to serve
three years of supervised release and must forfeit a Cadillac Escalade,
a small hotel, a vacant lot, and more than $159,000 in monies earned
from his illegal chemical trafficking activities.
The prosecution and conviction of the defendant is the result of
an extensive investigation by Special Agent Jerry Craig of the DEA
and Special Agent Chris Wajda of IRS-CID. The case was prosecuted
by Assistant United States Attorney Craig Denney.
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