Marc H. Silverman, the Acting United States Attorney for the District of Connecticut, has announced a plea of guilty from Khawar M. Khokhar in connection with a fraudulent scheme against the state. Khokhar, a 36-year-old from Ellington, faced U.S. District Judge Sarala V. Nagala in Hartford to plead guilty to a charge linked to defrauding Connecticut of over $1.2 million.
Court documents indicate Khokhar operated Smokin’ Wholesale LLC, a tobacco wholesaler licensed in Connecticut. His business acquired tobacco products from out-of-state distributors in Pennsylvania and Illinois, which were then sold to Connecticut retailers. From May 2017 to June 2019, Smokin’ Wholesale purchased approximately $2 million in tobacco products. However, Khokhar was accused of not accurately reporting the product values imported into Connecticut to the Department of Revenue Services, leading to unpaid tobacco taxes. This oversight resulted in a tax loss for the state exceeding $1.2 million.
Khokhar has pleaded guilty to conspiracy, a charge that carries a maximum of five years imprisonment. Alongside his guilty plea, Khokhar agreed to pay $1,201,701.13 in restitution and forfeit $60,707 seized during the investigation. His sentencing is planned for September 3, and he is currently on a $100,000 bond awaiting this date.
The investigation was carried out by the U.S. Postal Inspection Service and the Criminal Investigations Division of the Connecticut Department of Revenue Services. Assistant U.S. Attorney Michael S. McGarry is leading the prosecution in this case.