Eight men plead guilty to racketeering charges, transferring funds to Palestine

KSDK -- Eight men involved in a near decade long criminal conspiracy operating out of St. Louis area convenience stores pleaded guilty Tuesday to racketeering or related charges, Acting US Attorney Michael W. Reap said.

According to documents, the RICO conspiracy dates back to 2000 and involves bank fraud, receipt of stolen property, conducting an unlicensed money transmitting business, purchasing contraband cigarettes for resale, not reporting requirement on exporting monetary instruments, and transporting monetary instruments and funds to avoid reporting requirements.

In plea agreements, the Hamed Organization operated in the City of St. Louis and St. Louis County. Members of this criminal enterprise, some of whom were related to each other, raised money through legal and illegal means and transferred those funds to entities in the Palestinian territories.

The convenience stores in question would receive and sell stolen goods, such as baby formula, computers, GPS devices and cigarettes. The group would buy items at rates well below fair market value and then sell them at an inflated rate for increased profits.

Authorities said the criminal enterprise operated out of the following convenience stores:

--Regal Food I, 4201 McRee Ave.
--Regal Food II, 3852 Virginia Ave.
--Ferguson Market, 9101 W. Florissant Ave.
--Prince Market, 9826 St. Charles Rock Rd.
--St. Louis Supermarket, 4331 Natural Bridge Ave.

The following men were charged with various RICO conspiracy charges:

--34-year-old Bassam Hisham Hamed of Florissant
--32-year-old Ghandi Hisham Hamed of Florissant
--28-year-old Ayoub Hisham Hamed of Hazelwood
--36-year-old Said Jarabaa of Florissant
--29-year-old Suhail Jarabaa of Florissant
--35-year-old Mohammed Badwan of Florissant
--37-year-old Mazen Badwan of Florissant
--49-year-old Nael Abdeljabbar of Florissant

The men will be sentenced in March 2010. If convicted, a RICO conspiracy charge carries a sentenced of up to 20 years in prison and fines up to $250,000. Conspiracy to structure in order to avoid reporting requirements carries a five year prison term and fines up to $250,000.