BOSTON – A pair of Worcester County men are facing the consequences after years of illegally trafficking smokeless tobacco into Massachusetts, dodging over $2.3 million in state excise taxes. Mohammad Hanif Balaparya, 63, of Shrewsbury, and Rakesh Garg, 53, of Holden, received their sentences yesterday in U.S. District Court.
Judge Margaret R. Guzman handed down three years of probation for Balaparya and two years for Garg. Both men pleaded guilty last October to one count of conspiracy to transport, possess, purchase and distribute in excess of 500 units of contraband smokeless tobacco. Balaparya also admitted to one count of transporting and possessing over 500 units of the illegal tobacco.
Federal prosecutors detailed a scheme that stretched throughout 2017. Balaparya routinely rented box trucks and drove to Bensalem, Pennsylvania, where he purchased large quantities of smokeless tobacco, funded by both his own money and contributions from Garg. The illicit goods were then hauled back to Shrewsbury and sold to convenience store owners across Massachusetts. The operation wasn’t limited to smokeless tobacco; authorities also determined the pair evaded an additional $1 million in taxes on cigars and other smoking products.
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Massachusetts State Police raided the defendants’ properties in December 2017. The search yielded the contraband tobacco itself, as well as approximately $140,000 in cash, which authorities believe represents the illegal profits from the operation. The court has ordered the forfeiture of these funds and will hold a further hearing to determine additional forfeiture and restitution amounts.
Acting U.S. Attorney Joshua S. Levy, along with ATF Special Agent in Charge James M. Ferguson, Massachusetts State Police Interim Colonel John E. Mawn Jr., and Massachusetts Department of Revenue Commissioner Geoffrey E. Snyder, jointly announced the sentencing. Local police departments in Shrewsbury and Holden also provided valuable assistance in the investigation. Assistant U.S. Attorneys Greg A. Friedholm and Lucy Sun handled the prosecution.
While the sentences may seem lenient given the scale of the tax evasion, federal authorities say the case highlights the importance of cracking down on illicit tobacco trafficking. Beyond the financial impact, these schemes often fund other criminal activities and undermine legitimate businesses that follow the law. The investigation remains ongoing to determine if other individuals were involved in the conspiracy.
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Key Facts
- Agency: ATF
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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