SCOTTSDALE, AZ - UPDATE (May 28, 2015): According to documents filed in the U.S. District Court of Arizona, Frank "Farah" Isaac agreed to a plea deal on April 28, 2015. He pleaded guilty to one count of failure to file form 8300, a class A misdemeanor.
Isaac also agreed to forfeit $68,500 seized on April 16, 2014.
IRS officials were seen conducting a raid at a Scottsdale auto dealer this week and new details have been released as to why that raid was conducted.
According to the criminal complaint filed with the United States District Court, two men, owners of Luxor Auto Group, were arrested and accused of money laundering, conspiracy and receiving unreported cash payments over $10,000.
Court documents show that Hamid Salari and Saied Salari accepted large sums of cash from undercover agents posing as drug dealers on multiple occasions and then agreed to launder the money through unreported car sales.
According to court documents, the two brothers met with the undercover agents six times between September 2013 and April 2014. During these meetings, the undercover agents informed the two men that they were drug dealers and would be paying with cash, but didn't want their names on any paperwork.
Court documents say Hamid and Saied agreed to the transactions.
A third individual, Farah Isaac, who owns a jewelry store, was also arrested on similar charges. During one of the meetings, Isaac allegedly agreed to sell two watches and a bracelet for nearly $38,000 to the undercover cops, who planned to purchase the items with drug money and let it go unreported.
No other details were released.