A Florida resident pleaded guilty on Monday to defrauding the state of California out of more than $10 million in tobacco taxes, according to federal prosecutors.
Akrum Alrahib, 43, formerly of Duarte and San Bernardino, now lives in Miami. He owned and operated a tobacco supply and distribution company.
Prosecutors alleged Alrahib provided untaxed tobacco products, including cigars, chewing tobacco, and loose-leaf tobacco, to multiple people and retailers throughout California between April 2016 and December 2017. Officials argued he knew the products would be sold illegally, depriving state authorities of millions in tax funds.
The tax rate on tobacco products reportedly doubled during Alrahib’s crimes, from just over 27% to around 65%.
“Tax evasion is not a victimless crime,” California Department of Tax and Fee Administration Director Nick Maduros said in a statement. “California communities lose critical tax dollars that pay for vital programs, and it isn’t fair for those hard-working business owners who play by the rules.”
Alrahib admitted to conspiring to commit mail fraud—a violation that can carry a maximum sentence of five years and prison and a $250,000 fine.
Alrahib will return to court on Dec. 13 for sentencing.
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