November 14, 2008

Three are charged with selling contraband cigarettes

A federal grand jury has charged three Rhode Island men with selling thousands of contraband cigarettes in packages without the required Rhode Island state tax stamps. It is a violation of federal law to sell cigarettes that do not bear evidence that the appropriate taxes have been paid to the state in which the sale takes place.

United States Attorney Robert Clark Corrente and Glenn N. Anderson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced two indictments, which the grand jury returned on November 12 in U.S. District Court, Providence.

One indictment alleges that Bassam Khalil, 43, of Cumberland, sold more than 10,000 contraband cigarettes in May. The other indictment alleges that Hussam Ghanam, 38, of Pawtucket, and Mohamed Amir Tatari, 45, of Johnston, conspired to sell more than 10,000 contraband cigarettes, and that Tatari did so on four occasions this year and Ghanam on two.

The indictment of Ghanam and Tatari alleges that the men on several occasions discussed with an undercover ATF agent the sale of cigarette packs without Rhode Island tax stamps. It alleges that, on three occasions in April and one in July, Tatari sold a total of 135 cartons of contraband cigarettes to the undercover agent.

Khalil is charged with one count of selling more than 10,000 contraband cigarettes that bore no evidence of payment of Rhode Island cigarette taxes. Ghanam and Tatari are charged

with one count of conspiracy, Ghanam with one count of selling more than 10,000 contraband cigarettes, and Tatari with two.

An indictment is merely an allegation and a defendant is presumed innocent unless and until proven guilty. Each offense charged in the indictments, upon conviction, carries a maximum penalty of five years in prison and a $250,000 fine.

The indictments were placed under seal until the defendants were arrested and appeared in court. Khalil and Ghanam were arraigned yesterday before Magistrate Judge David L. Martin, and Tatari today. All three pleaded not guilty and were released on bond.

The indictments result from an investigation by ATF, with assistance from Providence Police, Johnston Police, Immigration and Customs Enforcement, and The Rhode Island Division of Taxation. Assistant U.S. Attorney John P. McAdams is prosecuting the cases.

Contact: 401-709-5032                Thomas.connell@usdoj.gov