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A Baltimore man has been sentenced to jail time and ordered to pay over $68,000 in restitution to the state for his involvement in a scheme to illegally import and sell untaxed cigarettes. The investigation, led by the Maryland Attorney General’s Fraud and Corruption Unit and the Maryland Alcohol, Tobacco, and Cannabis Commission (ATCC), uncovered a conspiracy to circumvent Maryland’s cigarette tax laws.
The scheme, which operated between September 4, 2024, and October 16, 2024, involved Saad Al Qutaibi, 40, of Baltimore. Al Qutaibi was found to have imported unstamped cigarettes from North Carolina into Maryland. He then affixed counterfeit Maryland cigarette tax stamps to these cigarettes before selling them to customers without remitting the state’s $5 per pack tax. Authorities executed a search warrant at the operation’s base in Baltimore City on October 16, 2024. During the search, law enforcement discovered more than 8,000 packs of untaxed cigarettes and a significant quantity of counterfeit Maryland tax stamps.
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The Maryland Attorney General’s office highlighted that such illicit activities undermine the state’s tax system, which is crucial for funding essential government services and ensuring a fair marketplace for legitimate businesses. The ATCC emphasized that cigarette taxes are integral to public health initiatives aimed at treating addiction, preventing youth access to tobacco products, and addressing the long-term health costs associated with smoking.
On June 9, 2026, Al Qutaibi pleaded guilty in the Circuit Court for Baltimore City to multiple charges, including conspiracy to transport unstamped cigarettes, conspiracy to possess a counterfeited tax stamp, and possession of over 30 cartons of unstamped cigarettes. He was sentenced by Judge Lawrence Fletcher-Hill to 30 days in jail and ordered to pay more than $68,000 in restitution to the State of Maryland. In addition to the jail time and restitution, Al Qutaibi was placed on three years of probation. Should he violate the terms of his probation, he faces a potential prison sentence of nearly eight years.
This case highlights the state’s commitment to prosecuting individuals who engage in tax fraud and illegal cigarette trafficking, thereby protecting Maryland taxpayers and responsible businesses. The Attorney General’s office credited the work of its Fraud and Corruption Unit, the ATCC, and the State’s Attorney for Baltimore City for their roles in the successful prosecution.
Article by Mel Anara, based upon information from the Maryland Attorney General’s Office.
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