Two Market Owners Failed To Pay $750k In Smokeless Tobacco Excise Tax

WALTHAM, MA — Two men from Massachusetts have been charged in connection for failing to pay hundreds of thousands of follars in smokeless tobacco excise tax over the last three years, Middlesex District Attorney Marian Ryan said Wednesday.

Javed Iqbal Shaikh, 45, of Waltham, was arraigned in Middlesex Superior Court on six counts of attempting to evade the smokeless tobacco excise tax.

A warrant has been issued for Sahid A. Tai, 50, of Billerica, who has also been indicted on six counts of attempting to evade the smokeless tobacco excise tax.

From 2018 to 2020, Shaikh owned Cronin's Market in Waltham and Tai owned A & R Market in Belmont. Prosecutors say that during those years, both men purchased untaxed products classified as "other tobacco products" including items like smoking tobacco and cigars, from a company outside of Massachusetts.

Over the three years that these purchases were made, neither owner paid any excise tax on the products, Ryan said. Based on information compiled from invoices, bank records, and delivery records, Shaikh failed to pay $579,700 in smokeless tobacco and cigar and smoking tobacco excise tax; and Tai failed to pay $250,267 in smokeless tobacco excise tax and cigar and smoking tobacco excise tax .

"The Department of Revenue remains committed to the ongoing efforts to stop the flow of illegal tobacco products and prevent loss of legitimate state revenue," said Massachusetts Department of Revenue Commissioner Geoffrey E. Snyder. "Our Criminal Investigation Bureau's collaborative partnership with the Middlesex District Attorney's Office makes it clear that we are serious in pursuing those in willful violation of Massachusetts tax laws."

Two Charged in Connection with Failing to Pay Over $750,000 in Excise Tax

Shaikh's next court date is April 26, 2022.