New York company admits guilt in contraband cigarette case

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.

This story was originally published February 6, 2014 at 3:21 PM with the headline "New York company admits guilt in contraband cigarette case."