United States Attorney
Northern District of Texas

1100 Commerce St., 3rd Fl.
Dallas, Texas 75242-1699

Telephone (214) 659-8600
Fax (214) 767-0978

IHSAN ELASHYI PLEADS GUILTY TO FEDERAL CHARGES

United States Attorney Jane J. Boyle announced that Ihsan Elashyi, also known as Sammy Elashyi, age 42, of Richardson, Texas, pled guilty this week in federal court before the Honorable United States District Judge Sam A. Lindsay to several federal charges stemming from a 39-count superseding indictment that was returned by a federal grand jury on April 10, 2002. As a result of his guilty plea, Elashyi faces a statutory maximum term of imprisonment of 50 years; a maximum possible fine of $1.25 million or twice the monetary gain to the defendant or twice the financial loss to the victims, as well as a $400 mandatory special assessment. Elashyi could also be ordered by the Court to pay restitution to the victims of his crimes. Sentencing has been set for September 9, 2002.

Specifically, according to papers filed in court, Ihsan Elashyi pled guilty to count 3 of the superseding indictment, charging a violation of Title 50, United States Code, Section 1701, et seq. and accompanying sections of Title 15 of the Code of Federal Regulations, shipping in violation of a Temporary Denial Order; count 14, charging a violation of Title 18, United States Code, Section 1029, access device fraud; count 24, charging a violation of Title 18, United States Code, Section 1956(a)(1)(A)(i), money laundering; and count 36, charging a violation of Title 18, United States Code, Section 1343, wire fraud. Additionally, as part of his plea agreement, Elashyi has agreed to forfeit several properties: a 2001 Chevrolet Tahoe; a 2001 BMW Motorcycle; and three Rolex watches.

Ihsan Elashyi was the founder of Tetrabal Corporation, as well as the principal owner and controlling person. Tetrabal Corporation was located in Richardson, Texas and it sold and exported computer hardware, computer software, and telecommunications equipment. The vast majority of Tetrabal's sales were to customers in the Middle East. Prior to the creation of Tetrabal Corporation, Ihsan Elashyi was employed by Infocom Corporation, a company owned by his brothers. While employed at Infocom, Ihsan Elashyi engaged in similar types of sales and exports as he did at Tetrabal.

The United States Department of Commerce controls and restricts the exportation of goods and technology from the United States by issuing the Export Administration Regulations. Under these regulations, the United States Department of Commerce is authorized to deny export privileges when such denial is found to be in the public interest and to prevent imminent violations of federal law and protect the national security of the United States.

On September 6, 2001, the Assistant Secretary of Commerce for Export Enforcement issued a Temporary Denial Order (TDO) denying all export privileges to, among others, Infocom, as well as defendants Ihsan Elashyi and Tetrabal Corporation. The Assistant Secretary of Commerce found that Infocom, and the defendants Ihsan Elashyi and Tetrabal Corporation were related entities. This TDO was based on evidence that Infocom had shipped and attempted to ship goods to Libya and Syria without authorization from the United States. The TDO was served on Ihsan Elashyi and Tetrabal Corporation on approximately September 14, 2001 and was published in the Federal Register on September 13, 2001.

Ihsan Elashyi admitted that on September 22, 2001, he and Tetrabal willfully violated the TDO by participating in a transaction that involved exporting, and the attempted exporting, of goods and commodities from the United States to Saudi Arabia, which goods were subject to the Export Administration Regulations of the United States. Specifically, Elashyi, doing business as Tetrabal Corporation, shipped a quantity of computers and monitors to Saudi Arabia.

Ihsan Elashyi admitted that he fraudulently acquired numerous credit cards in other persons' names, without the knowledge of the card holder. Elashyi would then obtain a supplemental card in his own name, ostensibly at the request of the primary card holder. In fact, one such card obtained by Elashyi was an American Express card in the name of a former acquaintance. Elashyi acquired a supplemental card on this account and used that card to make numerous purchases and cash advances of more than $284,000. All told, the investigation revealed that Elashyi fraudulently acquired dozens of credit cards which he used to incur charges exceeding $750,000.

Elashyi also pled guilty to money laundering based upon his having used the proceeds from his unlawful activity to conceal the activities and to enable the scheme to continue. Several of these financial transactions included making payments on the numerous credit card accounts he had fraudulently obtained so that he could continue to use these fraudulent credit card accounts.

As mentioned above, Elashyi engaged in a scheme to defraud Saudi Systems, Inc. of Saudi Arabia. He failed to disclose to Saudi Systems, Inc. that he and his company, Tetrabal, were the subject of the TDO and prohibited from shipping good outside the United States. In specific violation of the TDO, Elashyi negotiated the sale of 119 computers to Saudi Systems, Inc. and faxed a price quotation to their office in Riyadh, Saudi Arabia. He accepted their order and received a wire transfer of $107,385 from Saudi Systems, Inc. to pay for the computers. After he received the funds, Elashyi falsely told representatives of Saudi Systems, Inc. that he could not return their money as his bank account had been frozen by the United States government. Elashyi kept the funds and used them for his own personal benefit and for the benefit of Tetrabal.

United States Attorney Boyle praised the collaborative investigative efforts of the United States Department of Commerce; Federal Bureau of Investigation; Internal Revenue Service - Criminal Investigation; United States Secret Service; United States Customs Service and the Addison Police Department. The case was prosecuted by Assistant United States Attorney Jim Jacks, Special Assistant United States Attorney Nathan Garrett of the FBI, and Special Assistant United States Attorney Barry Jonas of the Department of Justice.

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