Raids uncover cigarette network
Four cigarette distribution and manufacturing companies have been raided, including one in north Mississippi, in the last two months as authorities continue a two-year investigation into an alleged tobacco black market.
Besides the Magnolia State, the black market network is believed to have ties to South Carolina and Kentucky, according to an FBI statement released Friday.
On May 26, a task force of federal, state and local law enforcement agents searched Global Distributing in Tupelo. The most recent raid was conducted Thursday at Holley Sales Group, a distribution company in Anderson, S.C. The FBI did not disclose what, if anything, was seized in those searches.
We uncovered an intentional effort to defraud the taxpayers of Mississippi,” State Auditor Stacey Pickering said. He estimated the unpaid state taxes on the cigarettes at about $5 million, given that Mississippi’s cigarette tax was increased recently from 18 to 68 cents per pack. Unpaid federal taxes could be millions more.
“During this tough economic time, every dime matters,” the auditor said. The state collected about $58.3 million in cigarette excise taxes last fiscal year, according to the State Tax Commission.
Clarion-Ledger
6/6/9
Magnolia Tribune
