NEW YORK - Undercover agents investigating New York's booming black market in smuggled cigarettes have seized more than 2 million counterfeit tax stamps from a Jordanian bootlegger, authorities announced Wednesday.
Brooklyn prosecutors said the haul in forged stamps could be the state's largest ever. If used, the fakes would have allowed unscrupulous cigarette dealers to evade nearly $6.1 million in state and city taxes, authorities said.
Investigators who searched a pair of Queens storage facilities said they also seized more than 100 cartons of counterfeit Marlboro cigarettes made in China.
“This type of fraud could cost taxpayers in New York up to hundreds of millions of dollars each year in lost revenue, and we will not tolerate it,” Brooklyn District Attorney Charles Hynes said.
The suspect, Rafea Al-Nablisi, was arrested by state tax investigators who had been posing as dirty tobacco distributors.
The agents said Al-Nablisi initially piqued their interest by claiming to have access to much larger shipments of knockoff cigarettes from China. That deal never materialized, but investigators said Al-Nablisi arranged to sell them an alternative: huge stacks of counterfeit tax stamps.
Tax stamps, which must be affixed by distributors to packs of legal cigarettes, cost $3 each in New York City, $1.50 in the rest of the state and $2.57 in New Jersey. Al-Nablisi offered them for 4.5 cents apiece, prosecutors said.
Investigators who searched the Queens storage rooms said they also found stamps from Pennsylvania, Virginia and Kentucky.
Al-Nablisi's attorney, Howard Greenberg, said his client is no smuggling kingpin.
“Even in the light most favorable to the DA's office, my guy is a nobody,” Greenberg said.
Al-Nablisi, who is 40 and had been living in Queens, pleaded not guilty after his arrest on Feb. 29. Prosecutors said they waited to announce the case because the investigation was ongoing.
State excise tax investigator Marybeth Cherubino, who was the lead agent on the case, said that, besides dealing in counterfeit tax stamps, Al-Nablisi bought 375,000 packs of untaxed cigarettes in February from undercover investigators.
“He wanted as much as we could supply,” she said.
Prosecutors said that Chinese-made knockoff cigarettes pose a special hazard, because there is no way for smokers to know whether they are laced with toxins even more dangerous than those ordinarily found in cigarettes.
“There may be pollutants in there, like heavy metals or lead,” said Michael Vecchione, chief of the Brooklyn district attorney's rackets division.
The arrest comes as some authorities voice concern about whether New York state's planned $1.25-per-pack hike in tobacco taxes, taking the price of a pack in the city to about $9, will fuel demand for contraband cigarettes.
Health surveys have found that more than a third of New York state smokers already regularly buy cigarettes from untaxed sources.
State Department of Taxation and Finance Commissioner Robert L. Megna said his agency has stepped up its campaign against contraband cigarette trafficking over the past year.
Investigators who searched a pair of Queens storage facilities said they also seized more than 100 cartons of counterfeit Marlboro cigarettes made in China.
“This type of fraud could cost taxpayers in New York up to hundreds of millions of dollars each year in lost revenue, and we will not tolerate it,” Brooklyn District Attorney Charles Hynes said.
The suspect, Rafea Al-Nablisi, was arrested by state tax investigators who had been posing as dirty tobacco distributors.
The agents said Al-Nablisi initially piqued their interest by claiming to have access to much larger shipments of knockoff cigarettes from China. That deal never materialized, but investigators said Al-Nablisi arranged to sell them an alternative: huge stacks of counterfeit tax stamps.
Tax stamps, which must be affixed by distributors to packs of legal cigarettes, cost $3 each in New York City, $1.50 in the rest of the state and $2.57 in New Jersey. Al-Nablisi offered them for 4.5 cents apiece, prosecutors said.
Investigators who searched the Queens storage rooms said they also found stamps from Pennsylvania, Virginia and Kentucky.
Al-Nablisi's attorney, Howard Greenberg, said his client is no smuggling kingpin.
“Even in the light most favorable to the DA's office, my guy is a nobody,” Greenberg said.
Al-Nablisi, who is 40 and had been living in Queens, pleaded not guilty after his arrest on Feb. 29. Prosecutors said they waited to announce the case because the investigation was ongoing.
State excise tax investigator Marybeth Cherubino, who was the lead agent on the case, said that, besides dealing in counterfeit tax stamps, Al-Nablisi bought 375,000 packs of untaxed cigarettes in February from undercover investigators.
“He wanted as much as we could supply,” she said.
Prosecutors said that Chinese-made knockoff cigarettes pose a special hazard, because there is no way for smokers to know whether they are laced with toxins even more dangerous than those ordinarily found in cigarettes.
“There may be pollutants in there, like heavy metals or lead,” said Michael Vecchione, chief of the Brooklyn district attorney's rackets division.
The arrest comes as some authorities voice concern about whether New York state's planned $1.25-per-pack hike in tobacco taxes, taking the price of a pack in the city to about $9, will fuel demand for contraband cigarettes.
Health surveys have found that more than a third of New York state smokers already regularly buy cigarettes from untaxed sources.
State Department of Taxation and Finance Commissioner Robert L. Megna said his agency has stepped up its campaign against contraband cigarette trafficking over the past year.
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