Baltimore man sentenced to jail, ordered to pay $68k for cigarette smuggling tax fraud scheme
A Baltimore man was sentenced to jail and was ordered to pay more than $68,000 to the state for his role in a cigarette smuggling tax fraud scheme.
Saad Al Qutaibi, 40, pleaded guilty to conspiring to illegally import untaxed cigarettes into the state and evade Maryland's cigarette tax, Maryland Attorney General Anthony Brown announced.
Al Qutaibi will serve 30 days in jail on charges of conspiracy to transport unstamped cigarettes, conspiracy to possess a counterfeit tax stamp, and possession of more than 30 cartons of unstamped cigarettes.
"Concerns for public health and fair business practices are driving forces behind much of the work that the ATCC does in tobacco enforcement," Maryland Alcohol, Tobacco, and Cannabis Commission (ATCC) Executive Director Jeffrey A. Kelly. "Cigarette taxes are essential to the State's public health initiatives to treat addiction, prevent minors from accessing tobacco, and deal with the long-term cost of smoking-related illness. This successful prosecution ensures that bad actors cannot profit at the expense of Maryland citizens, and protects a fair and competitive marketplace for thousands of responsible Maryland businesses."
The cigarette smuggling tax fraud scheme
From September 4, 2024, to October 16, 2024, Al Qutaibi imported untaxed cigarettes from North Carolina into Maryland, stamped them with counterfeit Maryland cigarette tax stamps, and then resold them to customers without paying the state's $5 per pack tax on cigarettes.
Investigators executed a search warrant at the headquarters of the conspiracy in Baltimore and seized more than 8,000 packs of untaxed cigarettes and hundreds of counterfeit Maryland tax stamps.
"Maryland's tax laws exist to ensure a fair and level playing field for businesses and to provide the revenue that supports essential government services," Attorney General Anthony Brown said. "Schemes involving counterfeit tax stamps, cigarette smuggling, and tax evasion undermine that system and cheat Maryland taxpayers. This case demonstrates that our Office will work with our law enforcement partners to investigate and prosecute those who seek to profit through fraud."
