Lodi City Council member arraigned in money laundering, online gambling scheme
A Lodi City Council member was arraigned Tuesday on charges related to a money laundering and online gambling scheme, according to the San Joaquin County District Attorney’s Office.
Shakir Khan faces multiple charges including money laundering, illegal gambling, tax evasion and Employment Development Department fraud.
He was elected to the District 4 council seat in a November 2020 election. The Sacramento Bee reported his arrest in late October.
Kahn, along with his brothers and co-defendants Zakir and Mohammed Kahn, allegedly ran illegal gaming operations out of Stockton and laundered the profits, according to the San Joaquin County Sheriff’s Office. Kahn also is accused of unlawfully receiving pandemic relief money from the state.
The investigation began more than two years ago, according to the San Joaquin County Sheriff’s Department, as deputies began investigating illegal gambling establishments in east Stockton.
“That investigation blossomed into a case involving dozens of search warrants, over $3,000,000 (yes, three million dollars!) of money laundering, EDD fraud, and illegal gambling,” the Sheriff’s Department said in a Facebook post.
The brothers face 58 felony charges in the $3 million scheme, the post said.
“Cases involving money laundering, fraud, and tax evasion are very complex and require an inordinate amount of resources to prove,” District Attorney Tori Verber Salazar said in a post on her department’s Facebook page. “Integrity matters, the truth matters, and our office prosecutes those who prey on and take advantage of marginalized communities.”
Kahn was posting about his City Council role on Facebook as recently as Monday. His page appears under the name Shak Khan, the same name he used to run for his council seat.
Kahn and Zakir Kahn were both arraigned Tuesday. Mohammed Khan is expected to be arraigned after arriving to the United States from Pakistan.
The District Attorney’s Office said documents have also been filed to seize properties believed to be acquired with illegal funds.
This story was originally published September 29, 2021 at 8:31 AM.
