News Release
U.S. Department of Justice
United States Attorney
District of Rhode Island
February 10, 2009
Three admit selling untaxed cigarettes
Three Rhode Island men have admitted selling thousands of contraband cigarettes in packages without the required Rhode Island state tax stamps. Bassam Khalil, 44, of Cumberland, sold more than 10,000 contraband cigarettes to an undercover agent last year. Hussam Ghanam, 38, of Pawtucket, and Mohamed Amir Tatari, 45, of Johnston, admitted being business partners selling contraband cigarettes in Rhode Island.
United States Attorney Robert Clark Corrente announced the guilty pleas, which the defendants entered in U.S. District Court, Providence. Khalil pleaded guilty on January 29 before U.S. District Court Judge William E. Smith, Ghanam on February 3 before Chief U.S. District Court Judge Mary M. Lisi and Tatari today before Judge Lisi.
At the hearings at which Ghanam and Tatari pleaded guilty, Assistant U.S. Attorney John P. McAdams said the government could prove that the two men were business partners who arranged for the sale of a total of 155 cartons of cigarettes to an undercover ATF agent at various locations in Rhode Island last year. None of the cigarettes had the required stamp indicating that the Rhode Island cigarette tax had been paid.
The sales took place on four occasions between April and July. For each transaction, the agent spoke with either Ghanam or Tatari, or both, to arrange the sale, and Tatari delivered the cigarettes to the agent.
On July 24, a Maryland State trooper stopped a vehicle driven by Ghanam. Inside were 486 cartons of contraband cigarettes, valued at nearly $25,000.
At Khalil’s plea hearing, Assistant U.S. Attorney McAdams said the government had proof that Khalil sold a total of 70 cartons of untaxed cigarettes to an undercover agent in April and May of last year.
Ghanam and Tatari pleaded guilty to conspiracy and selling more than10,000 cigarettes in packages that did not bear the appropriate state sales tax stamp. Khalil pleaded guilty to selling more than 10,000 cigarettes in packages that did not bear the tax stamp. The maximum penalty for each offense is five years in federal prison and a $250,000 fine.
All three defendants are free on bond, pending sentencing. Ghanam is scheduled to be sentenced on May 14 and Tatari on May 22. Khalil’s sentencing has not been scheduled.
The case resulted from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from Providence Police, Johnston Police, Immigration and Customs Enforcement, and The Rhode Island Division of Taxation.
Contact: 401-709-5032 Thomas.connell@usdoj.gov