From: Maryland Government/Comptroller Franchot’s Announcements via Afro
-Three-Month Investigation Resulted in Confiscation of Nearly 49,000 Packages–
Annapolis, Md. (April 8, 2015) – Comptroller Peter Franchot today announced that members of his Field Enforcement Division arrested a Gaithersburg man following a three-month investigation into the illegal importation, transportation and retail sales of untaxed Other Tobacco Products (OTP). The OTP products — cigars and related products, snuff and chew totaling nearly 49,000 packages — were imported into Maryland and sold in retail establishments in Baltimore City, Baltimore County, Prince George’s County, Anne Arundel County and Harford County.
“This arrest and criminal citation reflects the ongoing, diligent efforts of my field enforcement agents to crack down on businesses who engage in illegal activities,” Comptroller Franchot said. “We will continue to use our legal authority and the full resources of the Comptroller’s Office to go after those who put consumers at risk and who unfairly undercut honest, law-abiding businesses through illicit sales.”
The investigation revealed that Iqbal Mohammed Hussain Thada, 44, of Gaithersburg obtained tobacco products from wholesalers in Virginia and Pennsylvania, transporting the OTP into Maryland and distributing it to retail stores as a wholesaler. The retailers then sold the untaxed tobacco to Maryland consumers. OTP from Virginia or Pennsylvania, which can be bought without an excise tax or at a reduced rate, can be unlawfully imported and distributed by unlicensed wholesalers and sold by retailers to increase profit margins through illegal sales, or in many cases, to sell directly to minors.
