Mohammad Hanif Balaparya, Trafficking Contraband Smokeless Tobacco, Massachusetts 2017

Two Worcester County men were arrested today for conspiring to traffic in contraband smokeless tobacco, evading over $2 million in taxes.

Mohammad Hanif Balaparya, 61, of Shrewsbury, and Rakesh Garg, 52, of Holden, were indicted by a federal grand jury with one count each of conspiracy to transport, possess, purchase and distribute in excess of 500 units of contraband smokeless tobacco. Balaparya was also indicted on one count of transporting and possessing over 500 units of smokeless tobacco.

The indictment alleges that throughout 2017, Balaparya and Garg rented a commercial box truck on an almost weekly basis to drive to Pennsylvania. While in Pennsylvania, Balaparya allegedly purchased significant quantities of smokeless tobacco, which he transported back to Massachusetts and stored at his home.

On one occasion, on Dec. 7, 2017, Balaparya allegedly transported more than 500 units of smokeless tobacco from Pennsylvania to Massachusetts. It is further alleged that Balaparya and Garg distributed the smokeless tobacco to certain convenience store owners in Massachusetts.

The charging statute provides for a sentence of up to five years in prison for each count, up to three years of supervised release, and a fine of $250,000, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Assistant U.S. Attorneys Greg A. Friedholm and Lucy Sun of Rollins’ Worcester Branch Office are prosecuting the case. The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

According to the indictment, Balaparya and Garg evaded over $2 million in excise taxes that wholesale distributors of smokeless tobacco in Massachusetts are required to pay.

The defendants were arrested this morning and were released following an initial appearance in federal court in Worcester this afternoon.

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