April 8, 2008
Pharmacist admits crimes tied to gambling
A Welch pharmacist admitted in federal court Monday that he conducted illegal financial transactions to mask that he was skimming money from his business to feed his gambling habit.
By Andrew Clevenger
Staff writer
A Welch pharmacist admitted in federal court Monday that he conducted illegal financial transactions to mask that he was skimming money from his business to feed his gambling habit.
Saad Kamil Deeb, 63, pleaded guilty to a three-count information, charging him with enlisting others to help him conduct transactions at a McDowell County bank so that he could move large amounts of money without triggering a Currency Transaction Report. A financial institution is required to file such a report with the Internal Revenue Service for any transaction over $10,000.
Assistant U.S. Attorney Hunter Smith said that between 2001 and 2005, Deeb became heavily involved in gambling on sports, betting large sums of money and even placing bets on behalf of his friends.
Whether he won or lost, his gambling proceeds or debts were paid in cash, Smith said. Usually, the amounts would approach $100,000 before Deeb or his bookies paid up, he said.
"Mr. Deeb did not want the IRS to know that he was engaged in large cash transactions," Smith said. So he and the others would keep their transactions under the $10,000 ceiling, Smith said, sometimes transferring just under that amount to various accounts several days in a row.
According to the information, Deeb and his associates moved more than $871,000 that way over a four-year period.
Deeb also admitted skimming cash from the pharmacy and filing false tax returns in 2003 and 2004, failing to report roughly $300,000 in income for each year, resulting in a tax loss of $175,000.
Deeb has since filed amended reports and caught up on the taxes he owes, Smith said.
Deeb also pleaded guilty to mail fraud, admitting he mailed an inaccurate quarterly contribution report to the state Unemployment Compensation Trust Fund in October 2005.
In order to mask some of his activities, Deeb paid some of his employees in cash, and then understated the taxable wages, Smith said.
Deeb faces up to 30 years in prison and fines of up to $750,000 when he is sentenced by U.S. District Judge David A. Faber in Bluefield on Aug. 4.  |