A Vallejo tobacco wholesaler has been arrested for allegedly not paying excise tax on tobacco products he purchased in Washington state.
Fayez Ayyoub, 66, failed to report purchasing $567,000 in untaxed tobacco products from the Lil Brown Smoke Shack in Yakima, Wash. between 2009 and 2012, the California State Board of Equalization said Monday.
Ayyoub owes $188,000 to the Board of Equalization, spokesperson Yating Campbell said.
Ayyoub also filed false repots to the BOE, significantly underreporting gross purchases and sales, Yating said.
The five felony charges also contain an enhancement alleging the tax evasion is an aggravated white-collar crime, Yating said.
Yating was booked in the Sacramento County jail under $175,000 bail after his July 28 arrest.
The arrest came after a three-year investigation by the California Tax Recovery and Criminal Enforcement Task Force, Yating said.
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