Calabasas Man Guilty of Not Paying Tobacco Tax

A Calabasas man was found guilty by a federal jury of selling tobacco products without paying state taxes. The scheme by Abdurrahman Yousuf can cost the state up to $10 million in lost tax revenue, according to a release from the California State Board of Equalization. Yousuf, a tobacco wholesaler, purchased tobacco products other than cigarettes from out of state sources, shipped it to California with reporting the shipments, and stored the products at a site other than his business premises, a violation of state law. Yousuf then sold the tobacco products for cash and without keeping receipts identifying the buyer and seller, another violation of state law, the Equalization Board said. The charges against Yousuf were the result of an investigation by the Equalization Board and the federal Bureau of Alcohol, Tobacco, Firearms and Explosives. Yousuf is the first to go to trial out of approximately a dozen people charged for defrauding the state of the tobacco excise tax. “California loses out on critical tax dollars to support vital programs when these types of tax evasions occur,” said Jerome E. Horton, vice chairman of the Equalization Board. “It is important that all of our agencies work together to find those who try to circumvent the tax laws.” Mark R. Madler