VALLEJO — State tax authorities arrested a 66-year-old tobacco wholesaler last week in Vallejo after a three-year investigation.
Fayez Ayyoub was arrested on suspicion of failing to report and pay excise tax on tobacco products purchased from an out-of-state distributor and filing false tax reports, the California State Board of Equalization announced Monday.
Ayyoub operated Valley Distribution in Vallejo and faces five felony counts of failing to report and pay taxes with an aggravated white-collar crime enhancement, according to a press release issued by the Tax Recovery and Criminal Enforcement Task Force.
Authorities believe Ayyoub failed to report the purchase of more than $567,000 in untaxed tobacco products from Lil Brown Smoke Shack in Yakima, Wash., creating tax liability of more than $188,000 owed to the state. Ayyoub is also accused of filing false reports with the state that underreported his gross purchases and sales.
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