US$50M gold fraud: US grand jury indicts sanctioned Guyanese Azruddin Mohamed, Nazar Mohamed

…if convicted duo face up to 20 years in prison for each of 11 charges, hefty fines, assets forfeiture

The Office of Foreign Assets Control (OFAC) sanctioned Guyanese businessmen Nazar Mohamed and his son Azruddin Mohamed, have been indicted by a grand jury in the United States (US) District Court for the Southern District of Florida. In a 12-page indictment seen by this newspaper, it highlighted 11 criminal charges ranging from wire fraud, mail fraud and money laundering, primarily connected to the export of gold to the US by Mohamed’s Enterprises. The Mohameds are currently facing sanctions from the US Department of the Treasury’s OFAC for gold smuggling. However, documents filed in Count one have accused the Mohameds of conspiring to defraud the US and Guyanese Governments between 2017 and June 11, 2024. The father-son duo is accused of using a scheme to unlawfully obtain property by transmitting communications via interstate and foreign commerce in violation of US laws.

Reusing seals
According to the prosecutors, the goal was to enrich themselves and defraud the Government of Guyana by evading taxes and royalties on gold exports. They allegedly reused Guyana Customs declarations and official seals on multiple shipments to make it appear that taxes and royalties had been paid when they had not. The indictment stated that Mohamed’s Enterprise would pay taxes and receive official Guyana Revenue Authority (GRA) and Guyana Gold Board (GGB) seals for one shipment, then reuse those same seals and documents on subsequent, untaxed shipments. The indictment further alleges that the Mohameds arranged for empty wooden boxes bearing intact GRA and GGB seals to be shipped from gold buyers in Dubai to Miami, and then sent to Guyana. These boxes were then used to export gold while falsely appearing to have cleared customs and tax obligations.

US authorities allege the scheme resulted in more than US$50 million in lost taxes and royalties to the Government of Guyana. In addition, indictments two to five detail similar conduct involving shipments of gold, emails allegedly from Nazar Mohamed requesting the sealed boxes from Miami, and exports of over 165 kilograms (kg) of gold per shipment destined for Dubai. Charges six to nine focus on mail fraud, referencing the shipment of sealed empty boxes from Dubai to Miami while charge 10 addressed money laundering which alleged that the Mohameds knowingly transferred funds within the US with the intent to promote unlawful activity.

Falsifying Lamborghini invoice
Charge 11 alleges that Azruddin Mohamed’s purchased and imported a Lamborghini sports car to Guyana in 2020. The indictment alleges he directed someone to purchase the car for US$680,000, then falsify the invoice to state a value of US$75,300 to understate import taxes. The sanctioned businessman, who is also the leader of the We Invest In Nationhood (WIN) Party, is presently before the local courts in relation to the importation of the sports vehicle and more so, for evading more than $380 million in taxes in violation of Section 217 of the Customs Act. He has also been charged with fraudulent declaration under the same act.

Forfeiture
Nonetheless, the US Government is seeking forfeiture of certain assets connected to the accused. If convicted, most charges carry a maximum sentence of 20 years in prison and fines of up to US$250,000 while the money laundering charge carries a fine of US$500,000 or the value of the laundered property. The indictment follows sanctions imposed over a year ago by the US Government on the Mohameds, their businesses, and Guyanese Government Permanent Secretary (PS) Mae Thomas in relation to the same allegations. In June 2024, OFAC announced that it sanctioned Azruddin Mohamed, his father Nazar Mohamed and several of their companies, including Mohamed’s Enterprise. The sanctions are related to the evasion of taxes on gold exports, with OFAC noting that between 2019 and 2023, Mohamed’s Enterprise omitted more than 10,000 kg of gold from import and export declarations and avoided paying more than US$50 million in duty taxes to the Government of Guyana. Since the imposition of the sanctions, the Guyana Government had suspended the licences of the Mohameds’ various businesses, highlighting that the US-sanctioned businessman is a risk and a threat to Guyana’s financial stability, sovereignty, and diplomacy.
Subsequently, several Government entities and local businesses, including commercial banks, have cut ties with the Mohameds.
Azruddin Mohamed launched the WIN Party, and contested the September 1, 2025 General and Regional elections. The party secured 16 seats in the National Assembly.