California tax investigators removed more than $26 million worth of illicit cannabis and tobacco products from the marketplace during the third quarter of 2026, according to the California Department of Tax and Fee Administration (CDTFA). The enforcement effort included more than 1,700 operations statewide, major product seizures, felony tax prosecutions, and a prison sentence for a Riverside County auto dealer convicted of tax evasion.
The agency reported that investigations conducted between July and September resulted not only in large-scale contraband seizures but also nearly $6.4 million in court-ordered restitution tied to tax crimes, counterfeit goods, money laundering, and cannabis-related offenses.
Major Tax Evasion Cases Lead to Prison Time and Millions in Restitution
One of the most significant cases involved a Riverside County car dealership owner who pleaded guilty to felony sales tax evasion. The defendant was ordered to pay $3 million in restitution and will serve a prison sentence of between two and four years.
In a separate case, another business was ordered to repay nearly $800,000 after pleading guilty to trademark counterfeiting, money laundering and tax evasion…