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Founder of fast-growing Buffalo firm sentenced to year in prison following drug charge

Fawzi Al-Arashi admitted to conspiracy to possess drugs with the intent to distribute them. But got leniency for taking "extraordinary" steps to turn his life around and make amends.
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BUFFALO, N.Y. — A Buffalo businessman who was arrested on drug charges seven years ago but who has since turned into a model citizen, according to his lawyers and prosecutors, was sentenced to one year and one day in prison on Tuesday.

U.S. District Judge Richard J. Arcara said he was aiming to issue a fair and reasonable sentence, in taking the "extraordinary" and "unusual" steps he did to depart from sentencing guidelines that had Fawzi Al-Arashi, 41, facing a sentence of nearly six years in federal prison.

In fact, by sentencing Al-Arashi to one year and one day, the judge cut the defendant another break because those who are sentenced to terms of more than one year in the federal system are eligible for "good time."

This means they can shave up to 54 days off their sentence per year, as long as they behave while incarcerated. 

In Al-Arashi's case, this means he could spend only 10 months behind bars.

An Unusual Case

An investigation began early in 2012, when a Los Angeles branch of the Drug Enforcement Administration notified the DEA's Buffalo office of a suspected synthetic marijuana shipment. The package was delivered to Al-Arashi's address on Delaware Avenue in Tonawanda.

Authorities executed a search warrant on July 25, 2012, at a warehouse leased to Al-Arashi. Officials found roughly 75 pounds of synthetic marijuana, which were typically sold in small, sealed packets.

Arashi was accused of selling the synthetic marijuana from a storefront.

Al-Arashi plead guilty to conspiracy to possess with intent to distribute a controlled substance.

Trying to Make Things Right

As noted during his sentencing on Tuesday, following his arrest, Al-Arashi seemed quickly intent on righting his wrongdoing, by not only cooperating with authorities, but also helping them bust up several drug distribution rings.

His lawyers noted that Al-Arashi did so at his own peril, risking his own safety by agreeing to wear a wire during one investigation.

According to his lawyers, Al Arashi's extraordinary efforts to cooperate even included an incident where authorities sought to seize his Toyota SUV under forfeiture laws, because they thought it would be an ideal vehicle to conduct undercover operations.

They learned, however, that they were unable to do so because there was a lien on the vehicle from the bank that financed its purchase. 

Instead of fighting them, Al-Arashi promptly paid off the loan so the feds could take the vehicle.

"He felt he had let people down through his conduct, including his own family, and felt ashamed of himself," said his attorney, Cheryl Meyers-Booth.

Only Getting Started

In the meantime, despite the criminal charges still hanging over his head, Al-Arashi formed an e-cigarette company in order to help people quit smoking.

Only six years later, Magellan Technology is among the largest makers of e-cigarettes in the nation and employs 140 people, about half of them Burmese immigrants living in Buffalo according to Al-Arashi's lawyers, who say the company is on pace to do $300 million in sales this year. 

"I am tremendously sorry for the pain I have caused my family for my stupid decision to carry and sell a product I should not have. I have since them tried the best I can to help my community," Al-Arashi said in court.

Striking a Balance

Al-Arashi's lawyers argued for a sentence of probation, telling Judge Arcara that his successful start up company that employs so many individuals would be in danger of closing if their client was sent to prison.

"I know what we are asking for is extraordinary," Meyers-Booth said. "But he (Al-Arashi) and what he has done since is arrest is also extraordinary."

Nonetheless, prosecutors pushed for incarceration.

"He certainly has availed himself to his opportunity cooperate," Assistant U.S. Attorney Timothy C. Lynch said. "And we appreciate that. But this was a serious crime."

Though he acknowledged Al Arashi's "extraordinary" efforts to make good for what he had done, and his efforts to atone for his crimes and to rehabilitate himself, Judge Arcara said wasn't convinced that the business would fail without Al-Arashi being there to lead it for the next year.

After pronouncing his sentence, Arcara said he would recommend that Al-Arashi be placed at a facility as close to the Western New York area as possible to serve out his term.

"He's demonstrated there are ways other than crime to make a living, and I find his likelihood of engaging in future criminal activity to be extremely low," Arcara said.

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