$1 million fine ordered in KC-to-NY cigarette smuggling case

A federal judge in Kansas City ordered a $1 million fine Friday against a company that conspired to ship several hundred thousand cartons of contraband cigarettes from Kansas City to New York.

U.S. District Judge Brian Wimes also ordered A.J.’s Wholesale of Irving, N.Y., to forfeit to the federal government $221,550 in illegal proceeds, and to pay $535,050 in restitution to the state of New York.

According to prosecutors, by buying the cigarettes in Missouri, the conspirators sought to avoid paying New York’s $4.35 per pack excise tax on cigarettes, which is significantly higher than the tax in Missouri. The cigarettes were sold primarily on New York Indian reservations.

Tony Rizzo, trizzo@kcstar.com

This story was originally published August 1, 2014 at 2:06 PM with the headline "$1 million fine ordered in KC-to-NY cigarette smuggling case."