Date: 01-24-2016

Case Style: United States of America v. Rashid Fehmi Ibrahim

Case Number: 0:13-cr-00207-SRN-TNL

Judge: Susan R. Nelson

Court: United States District Court for the District of Minnesota (Hennepin County)

Plaintiff's Attorney: Benjamin Langner

Defendant's Attorney: Murad Mohammad and Gary Wolf

Description: Minneapolis, MN - Twin Cities Man Sentenced To 57 Months In Prison For Conspiracy, Fraud, And Illegally Buying And Selling Tobacco Products

In addition to his prison sentence, the defendant is ordered to pay more than $3 million in restitution.

Rashid Fehmi Ibrahim, 40, for conspiracy, mail fraud and the illegal purchase and transport of tobacco products. The defendant pleaded guilty on June 8, 2015, before Judge Susan R. Nelson in U.S. District Court in St. Paul, Minn., to one count of Conspiracy to Commit Mail Fraud and Wire Fraud, five counts of Mail Fraud, one count of Conspiracy to Ship, Transport, Receive, Possess, Sell, Distribute and Purchase Contraband Smokeless Tobacco, and six counts of Shipment, Transport, Receipt, Possession, Sale, Distribution and Purchase of Contraband Smokeless Tobacco.

According to his guilty plea and documents filed in court, between 2007 and 2011, IBRAHIM purchased approximately $4,300,000 of untaxed Other Tobacco Products (“OTP”) from out-of-state tobacco wholesalers such as ISA Chicago Wholesale, Inc. (“ISA”) and shipped them to Minnesota. The defendant purchased the OTP free of any state taxes and intended to resell it without paying any state taxes in Illinois, Minnesota or elsewhere. IBRAHIM knew he was not a licensed distributor, manufacturer or carrier and, therefore, was unauthorized to purchase, sell, distribute, possess or receive smokeless tobacco products.

According to his guilty plea and documents filed in court, IBRAHIM used various aliases and addresses to conceal his OTP purchases and used private interstate contract carriers to ship the products from the wholesaler to Minnesota where IBRAHIM stored them in rented storage units. After receiving the shipment of OTP, IBRAHIM would illegally resell the products to retail establishments and other OTP traffickers in Minnesota. IBRAHIM purposely evaded the payment of state taxes and is ordered to pay a total of $3,048,109.39 in restitution to the state of Minnesota.

This case is the result of a joint investigation conducted by the Minnesota Department of Revenue-Criminal Investigation Division and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives.

Defendant Information:

RASHID FEHMI IBRAHIM, 40

San Juan, Puerto Rico.

Convicted:

Conspiracy to Commit Mail Fraud and Wire Fraud, 1 count
Mail Fraud, 5 counts
Conspiracy to Ship, Transport, Receive, Possess, Sell, Distribute and Purchase Contraband Smokeless Tobacco, 1 count
Shipment, Transport, Receipt, Possession, Sale, Distribution and Purchase of Contraband Smokeless Tobacco, 6 counts
Sentenced:

57 months in prison
3 years supervised release
$3,048,109.39 in Restitution

Outcome: Defendant was sentenced to 57 months in prison, 3 years of supervised release and order to pay $3,048,109.39 in restitution.

Plaintiff's Experts:

Defendant's Experts:

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