Connecticut Tobacco Wholesaler Who Defrauded State of $1.2 Million Sentenced to 20 Months in Federal Prison

David X. Sullivan, United States Attorney for the District of Connecticut, announced that KHAWAR M. KHOKHAR, 37, of Ellington, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 20 months of imprisonment and two years of supervised release for defrauding the State of Connecticut of more than $1.2 million in tobacco tax revenue.

According to court documents and statements made in court, Khokhar operated Smokin’ Wholesale LLC, a Connecticut-licensed tobacco wholesale business that acquired smokeless tobacco and other tobacco products from out-of-state distributors, including businesses in Pennsylvania and Illinois, and sold the products to retail merchants in Connecticut.  Between approximately May 2017 and June 2019, Khokhar and Smokin’ Wholesale purchased approximately $2 million in tobacco products from the distributors, but failed to report accurately to the Connecticut Department of Revenue Services the value of the products imported into the state, and failed to pay to the state the tobacco-related taxes owed.  Through this scheme, Khokhar and others caused Connecticut to suffer a tax loss of more than $1.2 million.

Judge Nagala ordered Khokhar to pay restitution in the amount of $1,140,994.13, and to forfeit $60,707 that was seized during the investigation.

Khokhar was arrested on May 20, 2024.  On April 3, 2025, he pleaded guilty to conspiracy.

Khokhar, who is released on a $100,000 bond, is required to report to prison January 19.

This investigation was conducted by the U.S. Postal Inspection Service and the Connecticut Department of Revenue Services, Criminal Investigations Division.  The case was by Assistant U.S. Attorney Michael S. McGarry.