Dealership, Cars Seized by IRS : Drug war: The business took large sums of cash from narcotics traffickers, officials say.

The Internal Revenue Service on Thursday seized a Los Angeles car agency and its inventory of luxury automobiles and arrested three owners accused of courting drug traffickers by concealing the purchase of expensive cars for cash.

The seizure of AMS Auto Sales, at 2045 La Cienega Blvd., along with more than 40 cars, was said to be the first time “in the West” that a large business has been seized under federal law calling for forfeiture of property involved in drug- or money-laundering violations.

Agents arrested Ahmad Reza Vosoughi, 32, of Los Angeles; Majid Ghassemieh, 33, of El Segundo, and Sorena Meshgani Solati, 34. They were named in a 16-count federal grand jury indictment returned Wednesday.

The indictment accused the three of conspiring to launder money, failing to file required IRS forms when receiving more than $10,000 in cash and evading federal income taxes in allegedly using their car agency to secretly sell cars to known drug dealers.

After arresting the three owners at midafternoon Thursday, agents chained the gate to the agency’s small parking lot near the Santa Monica Freeway. Cars worth hundreds of thousands of dollars--including Jaguars, Mercedes-Benzes, BMWs, Ferraris and Porsches--were parked behind a high wrought-iron fence.

The seized automobiles will be offered for use by law enforcement agencies first, then sold at auction, an IRS spokesman said.

William G. Gilligan, branch chief of the IRS’ Criminal Investigation Division, said the investigation leading to Thursday’s arrests began two years ago when a routine audit aroused the suspicions of IRS examiners.

Federal agents later learned through the Los Angeles Police Department that AMS had sold cars to a number of well-known drug dealers, Gilligan said.

At one stage, he said, the federal Drug Enforcement Administration tried unsuccessfully to make drug buys at the agency.

According to Gilligan, AMS, which proclaimed “the lowest prices” on a small sign facing the street, accepted large sums of cash from drug traffickers and failed to file the IRS form required when a business receives more than $10,000 in cash in one transaction.

The three arrested men are also accused of understating AMS’ gross receipts on their tax returns. They are expected to be arraigned today in Los Angeles federal court.

If convicted, Vosoughi faces a maximum penalty of 43 years in prison and a fine of $875,000; Ghassemieh, 42 years and $850,000, and Solati, 40 years and $800,000, according to the U.S. attorney’s office.