A Connecticut tobacco wholesaler has been sentenced to 20 months in federal prison for defrauding the state of more than $1.2 million in tobacco tax revenue. The announcement was made by David X. Sullivan, United States Attorney for the District of Connecticut.
Khawar M. Khokhar, 37, of Ellington, operated Smokin’ Wholesale LLC, a business licensed in Connecticut to sell tobacco products. According to court documents and statements made during the proceedings, Khokhar’s company acquired smokeless tobacco and other related products from distributors outside Connecticut, including businesses located in Pennsylvania and Illinois. These products were then sold to retail merchants within the state.
Between May 2017 and June 2019, Khokhar and his company purchased approximately $2 million worth of tobacco products but failed to accurately report the value of these imports to the Connecticut Department of Revenue Services. As a result, they did not pay the required state taxes on these goods. Authorities said this scheme led to a tax loss exceeding $1.2 million for Connecticut.
U.S. District Judge Sarala V. Nagala ordered Khokhar to pay restitution totaling $1,140,994.13 and also mandated forfeiture of $60,707 that had been seized during the investigation.
Khokhar was arrested on May 20, 2024. He pleaded guilty to conspiracy on April 3, 2025.
He is currently released on a $100,000 bond and must report to prison by January 19.
The investigation was conducted by the U.S. Postal Inspection Service together with the Criminal Investigations Division of the Connecticut Department of Revenue Services. Assistant U.S. Attorney Michael S. McGarry prosecuted the case.
