AP NEWS

Tobacco wholesaler gets prison for cheating state of $6M

February 14, 2019

NEW HAVEN, Conn. (AP) — A tobacco wholesaler who cheated Connecticut out of nearly $6 million in tax revenue by underreporting the amount of tobacco he sold has been sentenced to three years in prison.

Federal prosecutors say 46-year-old Rishi Malik, of Fairfield, was also sentenced Wednesday to three years of probation and was ordered to pay $5.8 million in restitution.

Malik, a citizen of India, previously pleaded guilty to wire fraud and violating the Contraband Cigarette Trafficking Act.

Court documents show Malik and a partner operated and assisted a tobacco wholesale business based in Bridgeport for several years, and failed to report more than $5 million in taxes owed to the state.

His partner previously pleaded guilty and is awaiting sentencing.

Malik faces immigration proceedings after he completes his prison term.