Feds prosecuting $43M tobacco smuggling case
Federal prosecutors allege a Connecticut man defrauded taxpayers in that state and in Massachusetts of $43 million in a tobacco smuggling case.
According to U.S. Attorney Carmen Ortiz, Syed Bokhari, 50, of Middletown, Conn., appeared in federal court Friday in connection with a 32-count indictment alleging conspiracy to commit wire fraud, wire fraud, trafficking in contraband smokeless tobacco, money laundering, and violation of the Prevent All Cigarette Trafficking Act.
Authorities say Bokhari was the "de facto owner" of warehouses in Springfield and Danbury, Conn., and are charging him with failing to pay excise taxes on smokeless tobacco and cigars from at least 2008 through June 5, 2012 while also using fake invoices and false tax returns. The Springfield warehouse went by the names A-Z Discount Merchandise and Discount Novelties and Merchandise.
Ortiz in a statement said Bokhari had deprived the states of "badly needed revenue that pays for essential government services like education, public safety, and infrastructure."
"Smuggling tobacco in order to evade state and local taxes is a multi-million dollar industry. It cheats the government as well by fueling an underground economy," said Bruce Foucart, special agent in charge of homeland security investigations. "Fortunately, Homeland Security Investigations' unique customs law enforcement authorities were designed specifically to target and investigate these types of crimes. Our special agents will continue tracking down these criminals in conjunction with our federal, state, and local law enforcement partners."
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