In a significant legal development, the owner and several employees of five unlicensed cannabis smoke shops in Rockland County, New York, have entered guilty pleas for tax fraud. The plea agreement reached with Rockland prosecutors requires the closure of these businesses, which were found operating without the necessary licenses to sell cannabis products in the state.
The Rockland District Attorney’s Office disclosed that the investigation, spanning a year, culminated in the execution of search warrants on March 4 at multiple smoke shops across the county. During these raids, authorities seized over $415,000 from affiliated bank accounts and confiscated approximately 405 pounds of cannabis from the five Zava stores scattered across Rockland.
Ibrahim Alfalahi, the owner of Zava and a resident of Nanuet, pleaded guilty to felony third-degree criminal tax fraud. Additionally, Abdo Alquhshi of Nyack and Sadek Alfalahi of Nanuet, both employees associated with the smoke shops, admitted guilt to misdemeanor fifth-degree criminal tax fraud charges.
The businesses implicated in the case, including Zava Lafayette Convenience Corp., Zava Candy Inc., Zava Flow Inc., Zava Central Convenience Corp., and Zava Smoke Inc., also pleaded guilty to felony second-degree criminal tax fraud charges.
Scheduled for sentencing on October 17 by County Court Judge Kevin Russo, the defendants await details of the plea agreement’s sentencing and restitution, which have yet to be disclosed by the District Attorney’s Office.
Rockland District Attorney Thomas Walsh underscored that resident complaints regarding cannabis sales to minors prompted the initial investigation. The ensuing probe revealed that the unlicensed Zava businesses not only operated unlawfully but also evaded tax obligations, depriving the community of essential revenue earmarked for public programs and services.
The crackdown on these illicit operations aligns with broader efforts by New York State to enforce regulations governing the sale of cannabis. Since the legalization of recreational cannabis in 2021, the state has struggled with licensing delays, resulting in the proliferation of unlicensed sellers. Law enforcement collaboration involving agencies like Homeland Security Investigations, New York State Tax and Finance, and local police departments underscores the gravity of the issue and the state’s commitment to upholding regulatory standards.
This case serves as a critical example of the challenges and consequences associated with unlicensed cannabis sales amid the state’s efforts to establish a regulated market that ensures consumer safety and compliance with tax laws.
Also Read:
- Former Illinois Senator Annazette Collins Sentenced to One Year for Tax Fraud Amid Corruption Probes
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In conclusion, the guilty pleas and impending closure of these unlicensed cannabis smoke shops highlight ongoing efforts to combat illegal drug sales and safeguard community interests in Rockland County and beyond.
