2 Dubai Companies, 3 Turkish Individuals Indicted on Organic Grain Fraud Import Scheme Charges
The U.S. charged two Dubai-based companies and three individuals for their roles in a scheme to import non-organic grain to the U.S., where it would be sold as certified organic, DOJ announced. Named in an indictment unsealed in the U.S. District Court for the District of Maryland, the Dubai entities are Hakan Agro DMCC and Hakan Organics DMCC, and the individuals are Turkish citizens Goksal Beyaz, Nuray Beyaz and Mustafa Cakiroglu. All five parties were charged with conspiracy, smuggling and wire fraud.
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From 2015 to 2017, the defendants allegedly carried out a scheme in which the two companies would buy non-organic soybeans and corn from Eastern Europe, shipping the goods to the U.S. labeled as "organic." The label permitted the sellers to solicit higher prices for their shipments. For instance, in 2015, the defendants allegedly bought non-organic, non-GMO soybeans from Ukraine for $423 per metric ton, later arranging for the soybeans to be shipped to Maryland, where they were sold as "organic soybeans" for $614 per metric ton, DOJ alleged.
The wire fraud and smuggling counts each carry a maximum 20-year prison sentence, and the conspiracy charges come with a maximum five-year prison sentence.