Five Arrested in Major Contraband Cigarette and Cigar Trafficking Case
More than 1,800 cartons of cigarettes, nearly 3,600 cigars, more than 46,000 counterfeit stamps, and more than $155,000 in cash seized in multi-agency investigation
For Release: Immediate,
For media inquiries only, contact: Ryan Cleveland, 518-457-7377
Investigators from the New York State Department of Taxation and Finance, the Queens County District Attorney’s Office, the New York City Police Department Asset Forfeiture Unit, and the New York State Police announced the arrest of five suspects for their alleged involvement in a contraband cigarette and cigar trafficking ring in Queens County and surrounding areas.
Sixteen search warrants were executed on eight residences, one storage location, and seven vehicles. The operation resulted in the recovery of $155,939 in cash, 1,833 cartons of untaxed and counterfeit-stamped cigarettes, 3,558 untaxed cigars, and 46,609 counterfeit tax stamps. Additionally, a firearm was recovered from one of the residences.
The potential excise tax loss to the State and City on the cigarettes and sheets of counterfeit stamps confiscated on the date of the arrest is over $190,000.
The five defendants were arraigned in Queens County Criminal Court on April 18, 2023, on the following charges:
- Jorge L. Espinal Calderon, Brooklyn, NY, on felony counts of possession of a forged instrument, possession and transport of more than 30,000 untaxed cigarettes, criminal possession of a firearm, criminal possession of a weapon, and conspiracy, as well as a misdemeanor count of possession of untaxed cigarettes for sale;
- Sergio Diaz, Brooklyn, NY, on felony counts of possession of a forged instrument, possession and transport of more than 30,000 of untaxed cigarettes, criminal possession of a firearm, criminal possession of a weapon, and conspiracy, as well as a misdemeanor count of possession of untaxed cigarettes for sale;
- Amin Lakhani, Rego Park, NY, on felony counts of possession of a forged instrument, possession of untaxed cigarettes, and attempt to evade or defeat tax, as well as a misdemeanor count of possessing untaxed cigarettes for sale;
- Rajesh Lakhani, Rego Park, NY, on felony counts of possession of a forged instrument and possession of untaxed cigarettes;
- Naresh Pahilajani, Corona, NY, on felony counts of possession of a forged instrument and possession of untaxed cigarettes.
The investigation is ongoing.
“Trafficking counterfeit tobacco and cigarette tax stamps is a serious crime. It deprives communities of revenue needed for vital services and puts law-abiding businesses at a competitive disadvantage,” said New York State Department of Tax and Finance Acting Commissioner Amanda Hiller. “Our investigators will continue to work with all our partners in law enforcement to pursue offenders and bring them to justice.”
“By allegedly stealing tax revenue for essential public services, the defendants were enriching themselves at the expense of our communities, neighbors, friends and families. I congratulate the investigators from my office involved in this investigation and thank all the law enforcement partners involved, especially the State Department of Taxation and Finance, which spearheaded the takedown,” said Queens District Attorney Melinda Katz.
Report fraud
You can report tax evasion and fraud online at the Tax Department's website or by phone at 518-457-0578. The information is kept confidential. The Tax Department promptly reviews each complaint and takes corrective action when appropriate.
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