New Charges Brought against Tobacco Wholesaler

BOSTON – Additional charges were handed down yesterday by a federal grand jury in Springfield against a Middletown, Conn. man in connection with his scheme to defraud Massachusetts and Connecticut of substantial tobacco tax revenue.

Syed I. Bokhari, 51, was charged in a 35-count superseding indictment with one count of racketeering conspiracy, 10 counts of wire fraud, five counts of trafficking in contraband smokeless tobacco, one count of conspiracy to commit money laundering, nine counts of concealment money laundering, five counts of money laundering and five counts of violation of the Prevent All Cigarette Trafficking (PACT) Act.  Bokhari was initially charged in a 32-count indictment in October 2014. 

The superseding indictment alleges that Bokhari was the head of a sprawling enterprise which included tobacco wholesale businesses, gas stations and convenience stores, real estate, and hotels in Massachusetts, Connecticut and Pennsylvania.  Between 2000 and 2012, Bokhari allegedly defrauded Massachusetts and Connecticut by failing to pay excise taxes on smokeless tobacco and cigars.  It is alleged that he transferred smokeless tobacco to those states without reporting them to the appropriate state tax authorities, as required under the PACT Act.  The superseding indictment also alleges that Bokhari accepted payments for tobacco products in cash amounts of more than $10,000, yet did not file the required federal financial reporting form.  He did this to disguise the true volume of the tobacco products being sent to Massachusetts and Connecticut and the source of the cash payments.  Bokhari also allegedly provided fake invoices and caused the filing of false excise tax returns to the Massachusetts and Connecticut tax authorities.  Lastly, Bokhari allegedly used his non-tobacco businesses to launder the proceeds of the tobacco tax fraud.

The charges of racketeering conspiracy and wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss for each count.  The change of trafficking in contraband smokeless tobacco provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss for each count.  The charge of conspiracy to commit money laundering provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the value of the property involved in the transaction for each count.  The charge of concealment money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the property involved in the transaction for each count.  The charge of money laundering provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss for each count.  The charge of violation of the PACT Act provides for a sentence of no greater no three years in prison, one year of supervised release and a fine of $250,000 for each count.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Commissioner Mark Nunnelly of the Massachusetts Department of Revenue; and Commissioner Kevin B. Sullivan of the Connecticut Department of Revenue Services, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorneys Alex J. Grant and Katharine Wagner of Ortiz’s Springfield Branch Office. 

The details contained in the charging document are allegations.  The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.