Father and Son Indicted in Miami for Orchestrating Multi-Million Dollar Gold Smuggling and Tax Evasion Scheme
A prominent father-son duo from Guyana, Nazar Mohamed and his son Azruddin Mohamed, have been indicted in Miami federal court on charges of orchestrating an elaborate scheme to smuggle gold and evade millions of dollars in taxes and royalties owed to their home country. The indictment, unsealed recently, alleges a seven-year conspiracy involving the illicit export of over 10,000 kilograms of gold, through Miami, ultimately depriving Guyana of approximately $50 million in state revenue. This case is among the trending financial crime news, highlighting the complex transnational schemes that often utilize major international hubs like Miami.
The Alleged Scheme: Gold, Bribes, and Deceit
According to U.S. prosecutors, the alleged scheme, which spanned from 2017 to 2024, involved evading Guyana’s legal requirements for gold exports, which include a 2% export tax and a 5% royalty tax on the value of precious metals shipped abroad. To circumvent these obligations, Nazar and Azruddin Mohamed, through their company Mohamed’s Enterprise, allegedly developed a fraudulent system. This system involved paying taxes and royalties on only one gold shipment to obtain the necessary government seals and customs declarations. Subsequently, they would reuse these official seals and paperwork on subsequent shipments, making it appear to Guyanese authorities that the required taxes had been paid when, in fact, they had not.
The indictment further details that the Mohameds are accused of paying bribes to Guyanese customs officials. These payments allegedly ensured that shipments of gold, handled by Mohamed’s Enterprise, were accepted with duplicate or reused paperwork and seals, effectively turning a blind eye to the evasion of export taxes and royalties. This intricate web of deceit allowed the father and son to profit immensely while Guyana’s government suffered significant financial losses.
Financial Crimes and Money Laundering Allegations
The charges filed against the Mohameds include conspiracy, fraud, and money laundering. Prosecutors assert that the proceeds generated from this alleged gold smuggling and tax evasion were used for their personal benefit. The scheme’s financial complexity is underscored by allegations of wire and mail fraud, suggesting a broad reach of their alleged illicit activities. The indictment, filed in the Southern District of Florida, details how payments and financial transactions related to the conspiracy were often wired to bank accounts within the United States.
Adding to the charges, Azruddin Mohamed faces an additional accusation related to the evasion of taxes on a luxury vehicle. He is alleged to have submitted false paperwork to avoid paying over $1 million in import duties on a Lamborghini Aventador SV, declaring its value at $75,300 instead of its actual cost of $680,000. This particular charge underscores the breadth of their alleged financial misconduct, extending beyond gold smuggling to other forms of tax evasion and deceit.
Key Players: A Business Elite and Political Figure
Nazar Mohamed is identified as the 90% owner of Mohamed’s Enterprise, a significant gold wholesaler and exporter based in Guyana, while his son, Azruddin Mohamed, held a 10% ownership stake. Beyond his business interests, Azruddin Mohamed is a notable figure in Guyanese politics, serving as an elected member of parliament and leading the We Invest in Nationhood (WIN) party. His dual role as a prominent businessman and political figure in Guyana adds a layer of complexity to the ongoing legal proceedings.
Miami as a Critical Hub
Miami plays a central role in the alleged criminal enterprise, serving as a key transit point for the smuggled gold destined for international markets, particularly Dubai. U.S. authorities state that the precious metal was shipped through Miami, with financial transactions often routed to the Southern District of Florida. The city’s status as a major port and financial center makes it a strategic location for such transnational smuggling and money laundering operations. In a related development, U.S. officials seized a shipment of gold bars valued at $5.3 million at Miami International Airport in June 2024, which reportedly originated from Mohamed’s Enterprise. This incident is part of the broader investigation into illicit gold trade occurring through the region.
Law Enforcement Action and Legal Ramifications
The case has been brought forth by a federal grand jury in the Southern District of Florida, with charges including conspiracy, wire fraud, mail fraud, and money laundering. Both Nazar and Azruddin Mohamed face possible extradition to the United States to stand trial. If convicted of the most serious charges, they could face up to 20 years in prison. The U.S. Treasury Department had previously sanctioned Azruddin Mohamed, his father, and their family business in 2024 for alleged gold smuggling and tax evasion, serving as a precursor to these federal indictments. Guyana’s government has publicly stated its readiness to cooperate with U.S. authorities regarding the extradition of the Mohameds.
Broader Context of Illicit Gold Trade
This news emerges against a backdrop of ongoing efforts by U.S. authorities to combat transnational criminal organizations involved in illicit gold smuggling and money laundering. Miami has been a focal point in several such investigations, including one where the CEO of a South Florida armored truck company pleaded guilty to customs fraud and money laundering charges related to a $140 million gold smuggling operation that also utilized Miami International Airport. These cases underscore the pervasive nature of illicit gold trading and its significant impact on both national economies and international financial integrity.
The indictment of the Mohameds is a significant development in the fight against financial crime, signaling a continued focus by U.S. law enforcement on dismantling sophisticated smuggling rings that exploit global trade routes and financial systems. The legal proceedings are expected to shed further light on the methods employed to conceal illegal activities and the extent of their impact.
As the news develops, the legal process will determine the fate of the father and son, with potential extradition proceedings and trials in Miami. This ongoing news story serves as a stark reminder of the intricate challenges faced in prosecuting complex, international financial crimes.
