‘Operation Stamp Out’ Nets 18 for Evading Nearly $2.2 Million in Cigarette Taxes

Charges are the result of a joint investigation by DA’s office, Nassau Police, and State Tax Department

MINEOLA, NY - Nassau County District Attorney Kathleen Rice, Police Commissioner Lawrence Mulvey and New York State Department of Taxation and Finance Deputy Commissioner William Comiskey announced today that 18 people have been charged as the result of two undercover investigations into the sale of untaxed cigarettes. Investigators also seized nine vehicles and more than $1 million in cash.

In coordination with the NYSDTF, members of the police department’s DA Squad and the District Attorney’s Office’s Investigations Bureau conducted separate investigations targeting cigarette retailers that had previously violated New York State cigarette tax law. Both investigations sold illegal untaxed cigarettes to a network of store owners from a storage facility and a dummy distribution company. The total tax loss to the state from these sales is more than $2.195 million.

“I want to applaud the efforts of the state and local agencies involved in this investigation, and their tireless work to ensure that everyone pays their fair share,” Rice said. “Especially in these tough economic times, it is essential that those who attempt to pass their tax burden on to others are held accountable for their actions.”

In the state of New York, retailers are required by law to purchase cigarettes through a licensed wholesaler, thereby ensuring that the state receives the proper cigarette and sales tax revenue. By buying the counterfeit stamped cigarettes, store owners could sell them at full price and pocket the tax. The cigarette tax in New York is $2.75 per pack, except for New York City where it’s $4.25 per pack. Approximately $565,000 of the missed cigarette tax revenue came from Queens with the remaining $1.514 million coming from Nassau.

“The amount of money that the county loses because of the sale of untaxed cigarettes is staggering. Each dollar that isn’t collected through a tobacco sales tax is another dollar lost that could go towards improving Nassau’s infrastructure and overall quality of life,” said County Executive Tom Suozzi. “The more money the county collects in sales tax, the less we have to collect in property tax, so these businesses are really robbing our county of an important source of revenue.”

All defendants, listed below, were arrested yesterday and charged with Possession of Untaxed Cigarettes, a D felony, and Evading Cigarette Tax Law, an E felony. If convicted, each defendant faces up to seven years in prison.

Charged is:

• Aarjav Shah, 28, of New Hyde Park owns AJ’s Store in Elmont and also sold cigarettes from his home. He is due back in court tomorrow and represented by the Legal Aid Society of Nassau County.
• Rai Makri, 39, of Valley Stream owns Your Food and Snack Zone in Elmont. He is due back in court tomorrow and represented by the Legal Aid Society of Nassau County.
• Muhammad Fayyaz, 36, of Floral Park was selling cigarettes from his home. He is due back in court tomorrow and represented by the Legal Aid Society of Nassau County.
• Kamal Kumar, 54, of Melville, owns BP Gas Station in Hempstead. He is due back in court tomorrow and represented by the Legal Aid Society of Nassau County.
• Manojkumar Patel, 55, of Elmhurst, Queens was selling cigarettes from his home. He is due back in court tomorrow and represented by the Legal Aid Society of Nassau County.
• Izhak Surizon, 51, of Glen Head owns gas stations in Hicksville, Islip, Patchogue, Jamaica, and also sold cigarettes from his Woodbury office and Glen Head home. He is due back in court Thursday and is represented by David McAndrews, Esq.
• Moyez Matin, 48, of Astoria was selling cigarettes from his home. He is expected to be arraigned today.
• Zohir Zahan, 44 of Woodside was selling cigarettes from his home. He is due back in court tomorrow and represented by the Legal Aid Society of Nassau County.
• Nissim Cohen, 47, of Jericho was selling cigarettes from his home. He is due back in court tomorrow and represented by the Legal Aid Society of Nassau County.
• Nileshkumar Patek, 55, of Albertson owns a Gulf Gas Station in Lake Success. He is due back in court tomorrow and represented by the Legal Aid Society of Nassau County.
• Mihir Patel, 26, of Little Neck manages Gulf Gas Station in Lake Success. He is due back in court Thursday and is represented by Bruce Roistacher, Esq.
• Shamin Amlani, 49, of Corona owns Citgo Gas in Westbury. She is due back in court tomorrow and represented by the Legal Aid Society of Nassau County.
• Pierre Jean, 52, of Westbury owns Chez Maggy Deli in Westbury. He is due back in court tomorrow and represented by the Legal Aid Society of Nassau County.
• Ehab Musallam, 34, of West Hempstead owns Francis Deli in Roosevelt and was also selling cigarettes from his home. He is due back in court Thursday and is represented by Elias Jaghab, Esq.
• Himanshu Patel, 29, of New Hyde Park owns a 7-11 in Westbury. He is expected to be arraigned today.
• Husaam Ayub, 41, of West Hempstead owns Lakeview Deli in Rockville Centre. He is due back in court tomorrow and represented by the Legal Aid Society of Nassau County.
• Steven Saliba, 28, of West Hempstead owns Dearborn Grocery in Roosevelt. He is due back in court Thursday and is represented by Elias Jaghab, Esq.
• Jose Toribio, 29, of Queens owns F & M Deli in Long Beach. He is due back in court Thursday and is represented by Ed Waldman, Esq.

The investigation is still ongoing and more arrests are expected to be made.

“The law enforcement community has maintained it's commitment in our efforts to investigate, arrest, and prosecute to the fullest extent of the law those individuals who attempt to manipulate the tax system and we will continue these investigations so we can protect the interest of all the law abiding citizens of this County,” Commissioner Lawrence W. Mulvey said.

“Across the state, Tax Department investigators are working with local authorities and prosecutors to fight illegal cigarette smuggling and counterfeiting,” New York State Department of Taxation and Finance Commissioner Robert L. Megna said. “Criminals who traffic in untaxed and counterfeit cigarettes deprive the public of millions of dollars in tax revenue, including sales tax revenue intended for county coffers.”

Handling the case for the District Attorney's Office is Deputy Bureau Chief Anne Donnelly of the Economic Crimes Bureau and ADA Kenneth St. Bernard of the Rackets Bureau.

The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.