KC jeweler agreed to launder money for IRS agent who posed as heroin dealer: Prosecutors

The owner of two Independence jewelry stores was convicted of a felony on Friday for agreeing to help launder money for an undercover IRS agent who had posed as a heroin dealer, according to federal prosecutors.

Junaid Sahibzda, 37, of Lenexa, pleaded guilty in the Western District of Missouri to a single charge of failing to submit necessary reporting documents to the IRS for a purchase above $10,000. Charging documents for Sahibzda were unsealed Friday on the same day he admitted to the crime.

Prosecutors say Sahibzda is part owner of Gold-N-Time, a kiosk shop, and Jawa Jewelers in the Independence Center indoor mall. In March 2020, an undercover agent approached his kiosk and pitched the idea of making cash purchases for expensive jewelry and then reselling the items in Chicago.

For it to work, the undercover agent said no government forms could be filled out. Sahibzda replied that it would “not be a problem,” according to prosecutors.

Roughly nine months later, the undercover agent arranged the purchase of a custom ring and bracelet valued at $20,650, according to court documents. Over the phone, Sahibzda instructed the agent to put $9,500 down so he could avoid filing a government form for the transaction.

Several weeks after that, the agent met Sahibzda in person and handed over in cash the balance owed for the items, which was above $12,100.

During an interview with federal agents the following year, Sahibzda admitted to making “multiple jewelry cash transactions” above $10,000 without filling out required forms, according to court documents.

While the single felony conviction carries a maximum penalty of up to five years in prison, the government reported in the plea agreement signed Friday that there was no knowledge of a serious criminal history for Sahibzda. Under the agreement, prosecutors agreed to recommend a sentence of probation so long as certain conditions are met.

An attorney for Sahibzda did not immediately reply to The Star’s request for comment Friday evening.

Sahibzda is scheduled to be sentenced Nov. 30.