Khawar M. Khokhar, Tax Fraud Scheme, Connecticut 2024

State: Connecticut
Category: White Collar Crime
Source: <a href="https://www.justice.gov/usao-ct/pr/indictment-charges-tobacco-wholesaler-operating-tax-fraud-scheme" style="color:#cc0000;" target="_blank" rel="nofollow noopener">DOJ Press Release ÃƒÂ¢Ã¢â‚¬Â Ã¢â‚¬â€

A tobacco wholesaler from Ellington has been charged with operating a massive tax fraud scheme in Connecticut, causing the state to lose over $1 million in revenue.

According to a federal indictment, KHAWAR M. KHOKHAR, 35, the owner of Smokin’ Wholesale LLC, failed to report accurately to the Connecticut Department of Revenue Services the value of tobacco products imported into the state between May 2017 and June 2019. The scheme, which involved purchasing approximately $2 million in tobacco products from out-of-state distributors, resulted in a tax loss of approximately $1 million for the state.

The indictment, returned on May 15, 2024, charges KHOKHAR with one count of conspiracy, eight counts of wire fraud, and one count of engaging in an illegal monetary transaction. If convicted, KHOKHAR faces a maximum term of imprisonment of up to 35 years, with individual counts carrying sentences of up to 20 or 10 years.

KHOKHAR appeared before U.S. Magistrate Judge Thomas O. Farrish in Hartford and pleaded not guilty to the charges. He was released on a $100,000 bond.

The investigation into KHOKHAR’s scheme was conducted by the U.S. Postal Inspection Service and the Connecticut Department of Revenue Services, Criminal Investigations Division. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.

U.S. Attorney Vanessa Roberts Avery stressed that an indictment is not evidence of guilt and that charges are only allegations until proven guilty beyond a reasonable doubt.

KHOKHAR’s scheme highlights the importance of vigilance in monitoring and enforcing tax laws to prevent such crimes from occurring in the future. The state of Connecticut will continue to work tirelessly to root out tax evasion and bring those responsible to justice.

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