Pelham man pleads guilty to tax evasion

Published 2:19 pm Tuesday, September 11, 2012


Pelham man Shamim Ahmed Khan pleaded guilty on Sept. 11 on charges of tobacco tax evasion and criminal possession of a forged instrument.

Khan, who operates a wholesale company that distributes goods to retail convenience stores, was indicted by a Shelby County grand jury on Jan. 11. He is the owner and president of Capital LLC, which is located in Pelham and does business as Capital Wholesale and Distribution.

Khan pleaded guilty for failing to pay $806,466 in state tobacco taxes for the period of February 2008-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 – it is a serious crime that will be thoroughly investigated, prosecuted and punished,” said Alabama Attorney General Luther Strange.

Khan is scheduled to be sentenced on November 19, when he faces a penalty of up to five years imprisonment and a fine of up to $100,000 for tax evasion, as well as up to 10 years imprisonment for second-degree possession of a forged instrument, which is a Class C Felony.

Strange and state Revenue Commissioner Julie P. Magee commended those involved in the 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.