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New York State Department of Taxation and Finance Commissioner Robert L. Megna and Rockland County District Attorney Thomas P. Zugibe today announced the culmination of a six-month undercover investigation of large-scale cigarette bootleggers operating in Rockland County resulting in the arrest of four men, including a licensed cigarette wholesaler, on charges arising from the investigation.
According to court documents, during the course of the investigation the men illegally purchased more than 12,000 cartons of cigarettes during an undercover police sting and evaded more than $384,000 in state and local taxes. Court authorized searches conducted at the homes and businesses of the four men resulted in seizures of approximately $14,300 in cash, 300 cartons of untaxed cigarettes, 4000 counterfeit cigarette stamps worth $11,000, two vehicles, computers and business records. Investigators also recovered approximately $129,000 that three of the defendants paid to undercover agents immediately before their arrest.
Each of the men has been accused in felony complaints charging a single count of attempted possession of a forged instrument, a class D felony punishable by up to seven years in jail. Additional charges are expected to be filed.
The undercover investigation is described in affidavits filed in support of search warrants issued by Clarkstown Town Justice Craig Johns.
In April 2008, Tax Department inspectors discovered cigarettes bearing counterfeit tax stamps in retail locations in Rockland and Westchester counties. Undercover agents working with the Tax Department began posing as cigarette smugglers and selling untaxed cigarettes to cigarette vendors in the Rockland County area, including the four defendants. During the transactions, defendants paid $27 to $29 per carton for cigarettes bearing what the defendants believed were counterfeit stamps and between $23 and $24 per carton for unstamped cigarettes. Legitimate cigarette wholesalers outside New York City must charge a minimum state-imposed price which is currently $66.50 per carton.
Those arrested include:
Moshen Taskindoust, 58, of 265 Old Route 304, New City. Tasklindoust, owner of Nader Wholesale Tobacco & Candy, a state licensed wholesaler of cigarettes, is located at 139 Route 9W, Suite 10, Haverstraw. It is alleged that between July 24, 2008 and the date of his arrest, Taskindoust purchased 3,630 cartons of untaxed cigarettes from undercover operatives and evaded $113,256 in taxes. The search warrant executed at his home resulted in the seizure of $9,500, unknown quantities of foreign currency, two stun guns and various records. From the Nader Wholesale location investigators seized $4,800 in cash, two computers and various records. Investigators also recovered approximately $24,000 that Taskindoust paid to the undercover agents prior to his arrest.
Ruben Marte, 45, of 35 Dixon Lane, Tarrytown. Marte, a cigarette dealer, allegedly purchased 6,811 cartons of untaxed cigarettes and evaded $212,503 in state and local taxes between July 24, 2008 and the date of his arrest. Searches conducted at premises controlled by Marte resulted in the seizure of two vehicles, 300 cartons of untaxed cigarettes, 4000 counterfeit New York State tax stamps and irons used to apply those stamps. Investigators recovered approximately $83,000 that Marte paid to the undercover prior to his arrest.
Mohammed Shiekh, 57, of 16 Rugby Road, New City. Shiekh, a cigarette dealer, operates primarily in the Rockland County area and allegedly purchased 1,680 cartons of untaxed cigarettes and evaded $52,214 in state and local taxes between July 24, 2008 and the date of his arrest. Investigators recovered approximately $18,900 that Shiekh paid to the undercover prior to his arrest.
David Armstrong, 50, of 8 Stubbe Drive, Stony Point. Armstrong, operator of the North Rockland Beverage Center, is located at 31 Route 9W, West Haverstraw, New York. It is alleged that between June 17, 2008 and the date of his arrest, Armstrong purchased 207 cartons of untaxed cigarettes and evaded $6,458 in state and local taxes.
Commissioner Megna said, "These arrests should serve as a warning to others who may be tempted to engage in trafficking in untaxed cigarettes. The defendants face substantial prison time and our department is committed to doing all that it can to insure that other traffickers in bootleg cigarettes face a similar fate. We will continue to work with district attorneys such as Thomas Zugibe to hold bootleggers accountable and we thank him for his aggressive prosecution of this case."
District Attorney Zugibe said, "This illicit conduct victimizes all of the hardworking taxpayers in Rockland County and across New York State and provides an unfair competitive advantage to these tax cheats to the detriment of legitimate taxpaying businesses. I commend the New York State Department of Taxation and Finance for their proactive initiatives and the partnership forged with this office. Hopefully, other dishonest business owners will realize that this type of conduct will not be tolerated and will be vigorously investigated and prosecuted."
Commissioner Megna thanked the investigators and officers of the Rockland District Attorney's office, the Clarkstown Police Department, the Haverstraw Police Department, the Tarrytown Police Department and the Rockland County Sheriff's Department for assisting in the execution of the search warrants and for their assistance in the investigation.
All of the defendants are presumed to be innocent unless and until proven guilty.
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Last Modified: October 03, 2008
