Tobacco Store Owner Sentenced to 54 Months’ Imprisonment for Wire Fraud Conspiracy and Aggravated Identity Theft
SCRANTON, PA – In a shocking turn of events, Rehan A. Merchant, a 40-year-old tobacco store owner from Bushkill Falls, was sentenced to 54 months’ imprisonment for conspiring to commit wire fraud and for committing aggravated identity theft.
According to the United States Attorney’s Office for the Middle District of Pennsylvania, Merchant pleaded guilty in June 2016, admitting to using counterfeit and stolen credit and debit cards to make fraudulent purchases at his store, Cigar and Tobacco Outlet in Tannersville, PA, between September 2014 and September 2015.
Merchant and his co-conspirators forged the names of cardholders on the associated credit and debit card receipts, further trafficking tobacco between Pennsylvania and New York.
The conspirators obtained $193,219.76 from the fraudulent scheme, with Merchant attempting to obtain an additional $983,811.59.
However, investigators were able to seize and forfeit $82,762.67 of fraudulently-obtained funds. As part of his sentence, Judge James M. Munley imposed a $193,219.76 order of restitution.
Merchant’s sentence sends a strong message to those who engage in white-collar crimes, highlighting the severity of the consequences for such actions.
The investigation was conducted by Homeland Security Investigations and the Monroe County District Attorney’s Office, with Assistant United States Attorney Phillip J. Caraballo prosecuting the case.
Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
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