Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced a guilty plea from Khawar M. Khokhar, 36, of Ellington. Khokhar admitted to being involved in a scheme defrauding the State of Connecticut of over $1.2 million. The plea was entered before U.S. District Judge Sarala V. Nagala in Hartford.
Khokhar ran Smokin’ Wholesale LLC, a Connecticut-based tobacco wholesale business. The company acquired smokeless tobacco and other tobacco products from distributors located in Pennsylvania and Illinois. These products were then sold to retail merchants in Connecticut. Court documents reveal that between May 2017 and June 2019, Khokhar, through Smokin’ Wholesale, purchased around $2 million in tobacco products. However, he failed to accurately report the value of products imported into Connecticut and did not pay the required state tobacco taxes. As a result, Connecticut incurred a tax loss exceeding $1.2 million.
Khokhar pleaded guilty to conspiracy, a charge that could lead to a maximum imprisonment of five years. He has also agreed to pay restitution of $1,201,701.13 and forfeit $60,707 seized during the investigation. The sentencing is scheduled for September 3. Khokhar is currently out on a $100,000 bond.
The investigation was carried out by the U.S. Postal Inspection Service and the Connecticut Department of Revenue Services' Criminal Investigations Division. Assistant U.S. Attorney Michael S. McGarry is prosecuting the case.
