Ellington Businessman Pleads Guilty To Conspiracy Charges: Feds

HARTFORD, CT — An Ellington business owner pleaded guilty in federal court Thursday to an offense stemming from a scheme that defrauded the state of Connecticut of more than $1.2 million.

Khawar M. Khokhar, 36, entered his plea of guilty to conspiracy, which carries a maximum term of imprisonment of five years, before U.S. District Judge Sarala V. Nagala. He also agreed to pay restitution in the amount of $1,201,701.13, and to forfeit $60,707 seized during the investigation, according to Marc H. Silverman, acting United States Attorney for the District of Connecticut.

According to court documents and statements made in court, Khokhar operated Smokin’ Wholesale LLC, a Connecticut-licensed tobacco wholesale business that acquired smokeless tobacco and other tobacco products from out-of-state distributors, including businesses in Pennsylvania and Illinois, and sold the products to retail merchants in Connecticut, Silverman said.

Between aeound May 2017 and June 2019, Khokhar and Smokin’ Wholesale purchased about $2 million in tobacco products from the distributors, but failed to report accurately to the Connecticut Department of Revenue Services the value of the products imported into the state, and failed to pay to the state the tobacco-related taxes owed. Through this scheme, Khokhar and others caused Connecticut to suffer a tax loss of more than $1.2 million, Silverman said.

Khokhar is released on a $100,000 bond pending sentencing, which is scheduled for Sept. 3, according to Silverman.