Feds: North Providence Businessman Smuggled Vehicles to Lebanon

A North Providence businessman who operates an auto sales and salvage company was arraigned Wednesday in federal court on charges that he smuggled 19 vehicles from the U.S. to Lebanon.

Carlo Fakhri, 50, of Fall River, appeared in U.S. District Court in Providence and pleaded not guilty to 19 counts of smuggling and 11 counts of submitting false export information. He is accused of unlawfully exporting 15 pick-up trucks, a passenger vehicle, two Chevy Suburbans and a Range Rover to the Mediterranean country. Fakhri, a naturalized U.S. citizen born in Lebanon, is proprietor of D’Agostinos Auto Sales and Salvage in North Providence.

Prosecutors said Fakhri violated a law that requires exporters to provide accurate information to the U.S. Commerce Department through its automated export system, or AES. Vehicle identification numbers and contact information for the purchaser and receiver of each vehicle must be provided. The AES aids in targeting and identifying suspicious or illegal shipments prior to export.

An indictment unsealed on Wednesday alleges that Fakhri in February and March of 2016 submitted false information and failed to follow foreign trade regulations. The regulations are designed to strengthen the U.S government’s ability to prevent the export of certain items, including motor vehicles, to unauthorized destinations or end users.

According to the Providence Journal, the indictment further states that Fakhri in 2013 executed a contract with a separate company in Lebanon — Fakhry Brothers Trading — that gave the Rhode Island businessman full powers to manage the company's daily affairs. The legal arrangement allowed Fakhri to receive goods through Beirut International Airport and other ports, to conduct banking related to the business, and to register vehicles.

The charges were announced Wednesday by U.S. Attorney Aaron L. Weisman, Homeland Security Investigations Acting Special Agent in Charge William S. Walker, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Special Agent in Charge of the U.S. Department of Commerce Office of Export Enforcement Boston Field Office William Higgins.

If convicted, Fakhri faces statutory penalties of up to 15 years in federal prison, 3 years supervised release, and a fine of up to $360,000. The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.