Ellington tobacco wholesaler admits defrauding state of $1.2M
Abraham Ribicoff Federal Courthouse
An Ellington tobacco wholesaler pleaded guilty Thursday in U.S. District Court in Connecticut to defrauding the state of more than $1.2 million in tax revenue.
Khawar M. Khokhar, 36, of Ellington, operated Smokin’ Wholesale LLC, a state-licensed tobacco wholesaler that purchased smokeless tobacco and other tobacco products from out-of-state distributors, including those in Pennsylvania and Illinois, and then sold the products to retailers in Connecticut.
According to court documents, between approximately May 2017 and June 2019, Khokhar and Smokin’ Wholesale bought about $2 million in tobacco products from distributors but failed to report accurately to the state Department of Revenue Services (DRS) the value of the products imported into Connecticut and failed to pay the taxes it owed to the state.
Marc H. Silverman, acting U.S. Attorney for the District of Connecticut, said Khokhar pleaded guilty to conspiracy, which carries a maximum prison sentence of five years.
Khokhar also agreed to pay restitution in the amount of $1,201,701.13 and to forfeit $60,707 seized during the investigation.
He was released on a $100,000 bond pending his sentencing on Sept. 3 by U.S. District Judge Sarala V. Nagala.
The investigation was conducted by the DRS Criminal Investigations Division and the U.S. Postal Inspection Service.
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