Tobacco wholesaler with ties to Springfield accused of defrauding Massachusetts and Connecticut out of $43 million in tobacco tax revenue

A tobacco wholesaler with ties to Springfield is accused of robbing Connecticut and Massachusetts of $43 million in tobacco tax revenue. Syed I. Bokhari, 50, of Middletown, Connecticut, is the subject of a 32-count indictment involving charges of conspiracy, wire fraud, money laundering, trafficking in contraband smokeless tobacco, and violating the Prevent All Cigarette Trafficking Act, according to U.S. Attorney Carmen Ortiz.

 

PACT, as the federal act is commonly known, took effect in 2010 and prohibits the U.S. Postal Service from carrying cigarettes in the mail. PACT aims to prevent tobacco smuggling by collecting all tobacco taxes. According to the indictment, Bokhari defrauded Massachusetts and Connecticut of millions by failing to pay excise taxes on cigars and smokeless products that were owed by businesses he owned and controlled. The illicit activity began in about 2008 and lasted through June 2012, according to federal prosecutors.

 

http://www.masslive.com/news/boston/index.ssf/2014/10/tobacco_wholesaler_accused_in.html