Sharon man Muhammad Saleem Iqbal, 53, was hit with 42 months in federal prison for masterminding a massive tobacco tax fraud and money laundering operation that ripped off Massachusetts for nearly $28 million. Sentenced today in U.S. District Court in Boston, Iqbal must also serve two years of supervised release and pay $28,027,946 in restitution.
Judge William G. Young ordered the forfeiture of hundreds of thousands of dollars in seized tobacco products and more than $150,000 in assets tied to Iqbal and the illicit wholesale tobacco business he ran. The operation, conducted under the name “Pick N Dip” in Norwood, peddled cigars and smokeless tobacco to gas stations and convenience stores while dodging state excise taxes for years.
Beginning around 2010, Iqbal and a business partner exploited tax loopholes by buying bulk tobacco in Pennsylvania—where no such taxes apply—and smuggling it into Massachusetts. They avoided filing required tax forms and skipped paying a 210% excise tax on smokeless tobacco and a 40% tax on cigars, both mandated under state law.
To hide the cash flow, Iqbal and his partner directed employees to conduct repeated large-scale cash transactions, often moving more than $50,000 at a time back to Pennsylvania to fund new shipments. These maneuvers were designed to skirt federal reporting requirements and mask the origins of the illicit profits.
Iqbal pleaded guilty in May 2016 to conspiring to defraud Massachusetts of wholesale tobacco taxes and filing a false personal income tax return. The case was prosecuted by Assistant U.S. Attorneys Stephen P. Heymann and Doreen Rachel, who led the Economic Crimes and Asset Forfeiture Units under U.S. Attorney Carmen M. Ortiz.
One co-defendant, Kaleem Ahmad, awaits sentencing tomorrow. The takedown was a joint effort by the IRS Criminal Investigations, FBI Boston, U.S. Department of State’s Boston Field Office, and the Massachusetts Department of Revenue—all closing the books on a long-running, high-stakes tax evasion ring.
Related Federal Cases
- Mohamed Afeez Sentenced in $973K Tobacco Tax Fraud · Massachusetts
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- NY Duo Sentenced in $179K Credit Card Scam · Pennsylvania
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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