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3 plead guilty to selling cigarettes illegally

01:00 AM EDT on Thursday, June 18, 2009

By W. Zachary Malinowski

Journal Staff Writer

PROVIDENCE — Three men accused of selling illegal cigarettes to an undercover federal agent have pleaded guilty to felony charges, but their admissions of guilt are expected to spare them any time in prison.

The trio, Mohamed Amir Tatari, 45, of Johnston; Bassam Khalil, 43, of Cumberland; and Hussam Ghanam, 38, of Pawtucket were charged last fall with selling tens of thousands of cigarettes that did not bear Rhode Island tax stamps.

The authorities say that, in Tatari’s case, the illegal cigarettes cost the state $12,911 in lost tax income.

Two weeks ago, Tatari was sentenced to a year’s probation after he pleaded guilty to three counts: conspiracy; and two counts of knowingly shipping, possessing, transporting, selling and distributing contraband cigarettes.

The offenses occurred on April 25, 2008, and July 24, 2008.

On Wednesday, sentencing for Ghanam was scheduled before Chief U.S. District Judge Mary M. Lisi. The proceeding was continued to Aug. 26.

Khalil is set to be sentenced on Friday at 11 a.m. U.S. District Judge William E. Smith will impose the penalty.

Court records show that federal prosecutors are seeking probation with “a special condition,” that orders both men to cooperate with the state Department of Revenue to pay outstanding tax liabilities. The terms of Tatari’s sentence also include the same special condition.

According to federal prosecutors, Tatari, Khalil and Ghanam were business partners who arranged for the sale of 155 cartons of untaxed cigarettes to an undercover agent from Alcohol, Tobacco, Firearms & Explosives at various locations across the state last year.

Tatari delivered the cigarettes to the federal agent four times between April and July.

On July 24, a state trooper in Maryland stopped a vehicle that Ghanam was driving. Inside were 486 cartons of contraband cigarettes valued at nearly $25,000. Cigarettes are much cheaper in states such as South Carolina and Virginia. They are brought to Rhode Island and sold illegally at a big profit.

At Khalil’s plea hearing earlier this year, a prosecutor told the court that Khalil sold 70 cartons of untaxed cigarettes to an undercover agent.

State officials are looking to make more criminal cases like those against Tatari, Khalil and Ghanam. Two months ago, the state increased the excise tax on cigarettes by $1, to $3.46 a pack, the highest in the country.

The state police and investigators from the state tax office are looking to crack down on the illegal sale of out-of-state cigarettes to make sure that the state collects as much money as possible from smokers.

bmalinow@projo.com

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