Monroe County Tobacco Store Owner Sentenced To 54 Months’ Imprisonment For Wire Fraud Conspiracy And Aggravated Identity Theft Offenses

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge James M. Munley sentenced Rehan A. Merchant, age 40, of Bushkill Falls, Pennsylvania, to 54 months’ imprisonment and a three-year term of supervised release, for conspiring to commit wire fraud and for committing aggravated identity theft.

According to United States Attorney Bruce D. Brandler, Merchant was the owner and operator of the Cigar and Tobacco Outlet in Tannersville, Pennsylvania. Merchant pleaded guilty in June 2016, admitting that from September 2014, through September 2015, he and his co-conspirators used and attempted to use counterfeit and stolen credit and debit cards to make fraudulent purchases at the Cigar and Tobacco Outlet. Merchant and his co-conspirators also forged the names of cardholders on the associated credit and debit card receipts. The conspirators further trafficked tobacco between Pennsylvania and New York. Merchant obtained $193,219.76 from the fraudulent scheme, and attempted but failed to obtain an additional $983,811.59.

Investigators were able to seize and forfeit $82,762.67 of fraudulently-obtained funds. In pronouncing the sentence of imprisonment, Judge Munley emphasized the number of victims who suffered from Merchant’s criminal activities. Judge Munley also imposed a $193,219.76 order of restitution as part of Merchant’s sentence.

The investigation was conducted by Homeland Security Investigations and the Monroe County District Attorney’s Office. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.

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