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Financial Crimes
04/16/2009

Defendants sentenced in interstate transportation of stolen property conspiracy

MIAMI - Six individuals were sentenced today in a multi-million dollar conspiracy involving the interstate transportation of stolen property following a joint investigation with U.S. Immigration and Customs Enforcement (ICE) the FBI, Internal Revenue Service (IRS), and the Broward County Sheriff's Office.

All six defendants were employees or individuals who sold stolen merchandise to Pharmacare, a wholesaler that often purchased bulk quantities of mixed and damaged stolen products.

Nasir David Khan was sentenced to 87 months imprisonment followed by three years of supervised release and his brother, Asif Jordan Khan, was sentenced to 57 months imprisonment followed by three years of supervised release. Both agreed to forfeit their rights, title and interest in $3.2 million of stolen products that were seized by law enforcement officials. Edward Joseph Smith was sentenced to 57 months imprisonment followed by three years of supervised release. Michael Dagnen was sentenced to 46 months imprisonment followed by three years of supervised release. James Foy was sentenced to three years of probation and Michael Spencer was sentenced to 18 months of probation. The six defendants were sentenced as a result of their convictions for conspiracy to transport stolen property, interstate transportation of stolen property, possession and receipt of stolen property and conspiracy to commit money laundering.

According to court documents and statements made in open court, the defendants bought and sold millions of dollars of over-the-counter medications, and health and beauty aids that had been stolen from Walgreens, Target, CVS and Rite-Aid. Pharmacare operated a warehouse to clean and package the merchandise and to remove store markings and anti-theft devices from the merchandise.