Monthly Archives: November 2018

New York A.G. Underwood Announces Indictment Charging 17 With Money Laundering in Untaxed Cigarette Trafficking Enterprise

From: Attorney General Barbara D. Underwood

AG Alleges that Near-Daily Runs to Virginia and North Carolina Resulted in the Trafficking of Over 18 Million Untaxed Cigarettes into NYC – Evading Over $3 Million in Taxes.

NEW YORK—Attorney General Barbara D. Underwood announced the indictment of 17 individuals for their alleged involvement in an untaxed cigarette trafficking enterprise operating in Queens, Kings, Bronx, New York, Westchester, and Nassau Counties, as well as in New Jersey, Virginia, and North Carolina. The network allegedly illegally trafficked over 18 million cigarettes from low-tax states, such as North Carolina and Virginia, to various parts of New York City. It is alleged that the defendants evaded over $3 million in tax liability due to New York State and New York City.

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New Zealand’s expensive cigarettes are making us the target of international smugglers

From: NewsHub

Michael Morrah

Customs say New Zealand is being increasingly targeted by international cigarette smuggling syndicates because of the price of a pack of smokes.

They seized 1.8 million cigarettes and rubbish bags full of cash in what’s been called the country’s largest ever tobacco fraud investigation.

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Georgian government allows cigarette smuggling from Abkhazia, Gali residents say

From: Democracy & Freedom Watch

GALI, DFWatch–The Georgian government has unofficially given Gali residents a green light for smuggling cigarettes, likely as part of the election campaign, according to locals DFWatch spoke to.

They have received explicit messages from Georgian law enforcers, they said.

“Everybody knows each other here, almost all law enforcement knows who smuggle cigarettes. For the past week, traders were told that they could bring counterfeit [cigarettes from Gali to Zugdidi]. Perhaps it is an attempt to gather votes. There can’t be any other explanation,” a resident of Gali who had recently started this illegal trade to earn her livelihood told us.

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Illicit cigarettes: the evil burning down SA’s economy

Editor’s Note: See also How the Illicit Cigarette Industry has Beaten the South African Revenue Service.

From: Financial Mail (South Africa)

Tim Cohen

The boom in the illicit cigarette trade coincides with skulduggery at the country’s revenue service, Sars, under former tax commissioner Tom Moyane, who was recently fired at the recommendation of the Nugent inquiry. How is it that a parallel illicit business operates quite openly; has it led to the huge slump in tobacco excise revenue; and why are the newcomers and established players like BAT at each other’s throats?

Read Complete Article [paywall]

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21 People Indicted in $15 Million Tax Fraud Scheme that Forged Millions of Tax Stamps for Cigarettes from North Carolina

From: Bronx District Attorney Darcel D. Clark

Takedown by Bronx DA, New York State Tax Dept., Homeland Security Investigations and NJ Treasury Office of Criminal Investigation Yields
Equipment and Trove of Forged Tax Stamps

Bronx District Attorney Darcel D. Clark, New York State Department of Taxation and Finance Acting Commissioner Nonie Manion, Brian Michael, Special Agent in Charge, Homeland Security Investigations Newark; and New Jersey State Treasurer Elizabeth Maher Muoio today announced that a joint investigation has resulted in indictments charging 21 people with forging millions of cigarette tax stamps and trafficking in illegal cigarettes that resulted in the evasion of more than $15 million in taxes and undercutting small businesses.

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