Two men from Worcester County, Massachusetts, have found themselves on the wrong side of the law after a scheme involving the trafficking of contraband smokeless tobacco, costing the state over $2 million in evaded taxes. Mohammad Hanif Balaparya, 63, of Shrewsbury, and Rakesh Garg, 53, of Holden, were handed their sentences on Thursday, managing to avoid jail time but landing probation periods of three years and two years respectively, according to a report by the U.S. Attorney’s Office.
The duo's operation ran throughout 2017, with Balaparya leasing commercial trucks to transport vast amounts of smokeless tobacco from Pennsylvania back to Massachusetts. The pair financed these purchases with their own money, with Garg contributing to an the fund, and then sold the product to certain convenience store owners in their home state. This side-step of the law allowed them to sidestep a hefty $2.3 million in excise taxes, a burden that wholesales distributors in Massachusetts are otherwise obliged to pony up. In addition, they ducked out on another $1 million in taxes on cigars and other smoking products.
It all came crashing down in December 2017 when authorities conducted searches on the defendants' properties. They seized the tobacco and around $140,000 in illegal profits. The court has since ordered the cash forfeited and set a date for a hearing to hammer out the details on further forfeiture and restitution. Special Agent in Charge of the ATF's Boston Field Division, James M. Ferguson, alongside other law enforcement officials, made the announcement yesterday.
The case fell under the purview of Acting United States Attorney Joshua S. Levy, with Assistant U.S. Attorneys Greg A. Friedholm and Lucy Sun leading the prosecution. Collaborative efforts from local law enforcement agencies played a pivotal role in bringing the traffickers to justice. Not only did the Shrewsbury and Holden Police Departments provide valuable assistance in the investigation, but also the Massachusetts State Police and the Massachusetts Department of Revenue had a hand in the complex operation.
