A New York state tobacco wholesaler pleaded guilty Thursday in federal court in Kansas City to trafficking contraband cigarettes and agreed to pay up to $1 million in fines, forfeitures and restitution.
AJ’s Candy & Tobacco LLC of Irving, N.Y., agreed that it participated in a conspiracy to sell unstamped packages of cigarettes, obtained in the Kansas City area, on Indian reservations between June 2010 through January 2012.
Under the company’s plea agreement, it must forfeit $221,550 to the government and pay a $243,400 fine. U.S. District Judge Brian C. Wimes may order the firm at sentencing to pay $535,050 in restitution to the state of New York to cover lost tax revenue.
The agreement also calls for the company to be on federal probation for two years.