A summary of Southern California-related business litigation developments during the past week.
Car Dealer Admits Laundering Money: An owner of the now-defunct luxury auto dealership AMS Auto Sales in West Los Angeles pleaded guilty to charges that he laundered narcotics profits by selling cars to drug dealers. Ahmad Reza Vosoughi, 32, pleaded guilty to charges that he failed to file tax forms reporting the dealership’s receipts of cash amounts exceeding $10,000 as part of his money-laundering activities and filing false tax returns. Prosecutors said Vosoughi admitted that he willingly accepted drug proceeds knowing that many of the customers of AMS Auto Sales were drug traffickers and said he sold a Mercedes-Benz to a drug dealer for $40,000 in cash without filing the appropriate tax documents. Two other AMS owners have pleaded guilty. The government has taken action under drug-related forfeiture laws to seize more than 30 luxury cars--including Rolls-Royces, Jaguars and a Ferrari--at the La Cienega Boulevard dealership. (Case No. 90-415. Plea Entered Oct. 16, 1990).
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