Pavan Vaswani, 39, and Rishi Malik, 45, were arrested on Thursday.
While Malik has been detained pending a detention hearing, Vaswani was released on a USD 250,000 bond.
Both have been indicted on 13 counts.
He then paid over those lower amounts instead of taxes actually owed.
Mailk conspired with Vaswani through means including forming a Pennsylvania company, Discount Deals, to acquire smokeless tobacco that was imported into Connecticut without payment of taxes, prosecutors said.
If convicted, each count carries a maximum term of imprisonment of 20 years.
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