Mohamed used his role as owner of City Cigarettes in Richmond to buy 440,000 cartons of cigarettes from wholesale stores between 2011 and 2014 without paying the applicable Virginia Retail Sales and Use Tax.
He did so by claiming the cigarettes would be resold at City Cigarettes, according to his plea agreement.
Instead, Mohamed and his co-conspirators sold most of the cigarettes to people who they knew would take the cigarettes out of state to sell in the black market — tax free.
“Mohamed and his co-conspirators never intended to and, in fact, did not collect or pay, the applicable Virginia Retail Sales and Use Tax for the cigarettes purchased at the wholesaler,” the United States Attorney said. “The activity of the conspiracy resulted in lost sales tax revenue to the Commonwealth of Virginia in the amount of $1,009,046.”
Mohamed, who was charged with the conspiracy on August 25, will be sentenced on December 11.