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Cigarette dealer awaits sentencing on corruption charges

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    Prosecution says man pocketed over $130 million selling untaxed cigarettes

  • Duration 4:00
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A cigarette dealer now awaits sentencing after an appeals court convicted him of helping to fuel a so called the black market of cigarettes.

Prosecutors say this guy pocketed more then get ready now.

130.

Million dollars selling untaxed cigarettes to native Americans at the peace pipe smoke shop on New York's Long Island.

The lawyers say he needs some of his customers resold the goods off the reservation.

And the prosecutors blame him for a string of violent crimes and at least one murder related to cigarettes.

A judge -- -- the man's conviction on corruption charges saying -- clause regarding taxes and contraband or too vague.

But day before yesterday at three judge panel reinstated the guilty verdict and said the man engaged in large scale cigarette.

Bootlegging.

Actually that was Monday -- Tuesday anyway the former prosecutor Fox's legal analyst Arthur -- dollars with us.

As is the criminal defense attorney -- -- and this is -- small numbers here 138 million.

Tax free.

138 million and some people would come to the store.

And by like 60000 taxes smokes at a time I mean you have a hard times -- -- that many down in a big weekend.

Any year.

I want the show was 161000 -- -- cigarettes.

I don't know but I thought it was -- I thought of it either way cigarettes the large number it's 3000.

Packs.

Which is you have -- spoke eight they have packs a day a year which -- the 175 cigarettes a day that would go -- -- Until this guy doesn't know that he's not selling into -- individual user who lives on the reservation.

He's selling it to a guy who was going somewhere else they don't start and selling them and the other guys collecting the tax without having paid the tax.

The -- took a quota bills like you've got plead guilty to find you -- you can get it.

-- The purpose of having laws is to put an ordinary citizen on notice.

What they can and what they can't do so let's start from the perspective -- that a brilliant jurist Dennis Hurley.

Brilliant judge said you know what I can't make heads or tails of this New York State law it's that -- the fact that the second circuit once upon a time to you know watch.

What going to throw the interpretation of whether or not it's okay to sell on the reservation and the cigarettes go off the reservation.

We believe -- -- the New York State Court of Appeals to figure out so you've got the judge saying I can't figure it out the second circuit punting to the Court of Appeals.

How would not be -- as -- to know that what he was doing was wrong and wait wait wait what do you mean now with the he's a -- and our good.

And I now know the way back to go to my doing what state law -- the New York State tax was sense that you are prohibited from taxing.

Cigarettes sold our name on -- Indian reservation -- federal law says.

Contraband cigarettes are defined as selling more than 101000 cigarettes they don't have.

A tax stamp on them but the law says you don't tax cigarettes sold on the reservation.

Bottom line is you don't want -- guy because there was a murder and he made a lot of money went over the bottom.

The bottom line is the court of -- to controlling things if the guy did it.

He's guilty he's -- -- -- the back to the judge sentenced him to jail on his guilty of course sometimes the government's set themselves up for this sort of thing that happened for instance we were all at the all star game in Kansas City what last week I guess it was.

Cigarettes were 430 a -- Here there more than 1430.

A pack.

So who wouldn't try to figure out a way to get him from cave somewhere in Missouri to someplace for the sell for well I mean you know they don't talk and by the way.

I thought yeah the other part of the problem was that -- New York State they looked the other way on this law that was what's called forbearance.

There was a law on the books but nobody forced you go to India reservation by cigarettes don't pay taxes who's eight that's 60000 that's -- that's a friend of yours is a smoker what's the best shot fat and -- to too caught his.

That's sixty does it or don't -- cartons is that is an amount you can legally carry by the way from Kansas city of New York you can't carry 60000 -- the white.

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