FOR IMMEDIATE RELEASE
NEWS RELEASE
November 20, 2012
For More Information, contact:
Luther Strange
Joy Patterson (334) 242-7491
Alabama Attorney General
Suzanne Webb (334) 242-7351
Jeff Sommer (334) 353-2199
Page 1 of 1
AG, REVENUE COMMISSIONER ANNOUNCE SENTENCING
OF PELHAM WHOLESALER FOR TOBACCO TAX EVASION
AND CRIMINAL POSSESSION OF FORGED INSTRUMENT
(MONTGOMERY)–Attorney General Luther Strange and Revenue Commissioner
Julie P. Magee announced the sentencing of a Pelham man for charges of tobacco tax
evasion and criminal possession of a forged instrument. Shamim Ahmed Khan was
sentenced in Shelby County Circuit Court yesterday to 10 years, which was split for the
defendant to serve six months imprisonment and five years probation. In addition, he was
ordered to pay restitution to the State of Alabama totaling $1,721,996 in criminal and civil
penalties and interest.
Khan, a Pelham man who operates a wholesale company that distributes goods to
retail convenience stores, was indicted by a Shelby County grand jury on January 11. He is
the owner and president of Capital LLC, which is located in Pelham and does business as
Capital Wholesale and Distribution.
On September 11, Khan pleaded guilty for failing to pay $806,466 in state tobacco
taxes for the period of February 2008 through April 2010. Khan also pleaded guilty to
criminal possession of a forged instrument, which he admitted to filing with a public
employee of the Department of Revenue for the State of Alabama in order to conceal his
nonpayment of state tobacco taxes.
“This case should serve as a reminder that tax evasion will not be tolerated,” said
Attorney General Strange. “This is a serious crime that will be thoroughly investigated,
prosecuted and punished, and we will act aggressively to recover funds that are due to the
public treasury.”
“When tax evasion occurs, state revenues are shortchanged, and that affects all of
our citizens in some way or another,” said Commissioner Magee. “Prosecution of such
crimes levels the playing field for competing business interests. The bottom line is – tax
evasion is not worth whatever short-term gain some may expect. Sooner or later, the
evasion will be discovered.”
Attorney General Strange and Commissioner Magee commended those involved in
this case, noting Deputy Attorney General Mike Duffy of the Attorney General’s Special
Prosecution Division and Special Agent Jerome Dangerfield of the Alabama Department of
Revenue’s Investigations Division.
–30–
501 Washington Avenue Montgomery, AL 36104 (334) 242-7300
www.ago.alabama.gov
