Some of those indicted bought cigarettes in St. Louis using convenience stores they owned then sold them in high cigarette tax areas like Chicago and New Jersey without paying taxes.
Police and federal agents recently made a series of arrests in Chicago and on the eastern area of St. Louis in an investigation of illegal cigarette sales, according to the St. Louis Dispatch.
The owners are accused of using several convenience stores they operated to create the appearance of legal cigarette purchases. Illegal profits from the contraband cigarette sales were laundered through accounts associated with the stores, according to the news outlet.
Twenty-three locations, including stores and the homes of their owners/operators were raided last week.
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Some of those indicted bought cigarettes in St. Louis using convenience stores they owned or operated “to create the appearance of legitimate cigarette purchases,” prosecutors said, and then sold them in high cigarette tax areas like Chicago and New Jersey without paying taxes there, according to reports.
Illegal profits form the contraband cigarette sales were laundered through accounts associated with the stores.
“The collaboration with our federal and local law enforcement partners is the key to breaking criminal enterprises in this area,” said James Gibbons special agent in charge with HSI Chicago.
If convicted, the defendants face a maximum of five to 20 years in prison and the possibility of a $1 million dollar fine.
This case was investigated by Homeland Security Investigations, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Federal Bureau of Investigation, Illinois State Police, Illinois Department of Revenue and Alcohol and Tobacco Tax and Trade Bureau.