UPDATE: Prosecutors will seek felony tax-evasion charges over Indian cigarette sales

By: The Citizen staff report

Tuesday, November 25, 2008 4:16 PM EST

Sheriff's deputies from Cayuga and Seneca counties executed search warrants Tuesday morning at Lakeside Trading in Union Springs and Lake Side Trading in Seneca Falls as part of an investigation into alleged tax evasion over the sale of untaxed cigarettes.
Sam Tenney / The Citizen
Cayuga County Sheriff's Deputies block the entrances to Lakeside Trading in Union Springs Tuesday morning as other officers removed boxes of merchandise from the store.
In Union Springs, the Lakeside Trading store on Route 90 had police tape around its perimeter and police were systematically removing boxes of cigarettes from inside and loading them onto a trailer.

Entrances to the store were blocked by police cars shortly after 10 a.m., and customers were not being allowed to enter the property. The store's employees were standing outside after being directed by police to leave the store.

At a 2 p.m. news conference at the Seneca County Office Building in Waterloo attended by Cayuga County Sheriff David Gould, Cayuga County District Attorney Jon Budelmann, Seneca County Sheriff Jack Stenberg and Seneca County District Attorney Richard Swinehart, police and prosecutors said the raids involved an investigation into tax evasion.

About 1.5 million cigarettes were confiscated Tuesday, and prosecutors said that possession of more than 10,000 untaxed cigarettes is grounds for felony tax-evasion charges.

No arrests were made Tuesday, but Budelmann said investigators will try to determine who in the Cayuga Nation leadership might be ultimately responsible for allowing tax-free cigarettes to be sold to non-Native customers and that he would likely send the case to a grand jury to seek one or more indictments.

While police said that both stores would be allowed to remain open to sell gasoline and other store merchandise, the Union Springs store remained closed late Tuesday afternoon, hours after police had left. Cayuga Nation officials were not commenting Tuesday afternoon.

For more coverage, including additional reaction and photos, see Wednesday's edition of The Citizen.

The Citizens' Say

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There are 5 comment(s)

dan w wrote on Nov 26, 2008 12:59 AM:

" Its about time the laws was enforced. Its too bad the state wouldn't take the bull by the horns. Then ingnore laws being broken. I have to thank both DA's in Cayuga and Seneca counties for upholding the laws. Next should be the fuel sales taking place untaxed. It is a class E felony to drive on the highway with untaxed fuel. Last time I pointed this out my comments wasn't posted. I do have a question for Jen. What valuable service dose Lakeside offer. That can't be found at any other convinence store? "

janedoe wrote on Nov 26, 2008 12:52 AM:

" Thanks should go out to DAs Budelman and Swinehart for their courage in enforcing equality for all under the law. This tax evasion "sovereignty" charade of the Cayuga Indians should have been shut down a long time ago. Our DAs have shown that they have the guts to do what Pataki, Spitzer and Patterson should have done. Once one group is given license to violate the law thru inaction of enforcement authorities, you are inviting anarchy across society.

Let's see how the Cayugas compete in New York State of the United States now that their huge, illegal tax advantage has been taken away. My guess is that those 2 stores are history. And deservedly so. I hope the Turning Stone is next, if they don't start paying taxes to NY. I wonder if the Oneidas are sweating.

Holiday travelers should be aware though, they may encounter some tire fires on the Thruway. "

brew1234 wrote on Nov 26, 2008 12:48 AM:

" The white man imposes one more injustice to the Native Americans. How fitting that another atrocity happens on Thanksgiving week? This makes as much sense as the Massachusetts State Police going to the Circle K in Seabrook, New Hampshire to confiscate cigs that sales tax was not collected on Massachusetts citizens. "

quest wrote on Nov 26, 2008 12:13 AM:

" Get your history correct! It was the Cayugas that slaughtered innocent settlers, then Sullivan took revenge and drove the Cayugas out of the area.

The past is the past, we can't live in it, we must live in the present and plan for the future. To make reparations for past injustices is rediculous. My people were enslaved too, except my ancestors were white, but nobody cares about them. Ask a native if they can recall their ancestor who were pushed from their land, I'd put money on it that they do not know their names. How many natives are in fact benefiting from these sales,I'd bet only a few. Ever been to their reservation????

I pay taxes and so should those who choose to buy goods from Indian stores. "

jen wrote on Nov 25, 2008 9:33 PM:

" Leave the Indians alone! Why must they be subjected to more bullying? The Cayugas provide a valuable service at this store. The Indian's beautiful, bounteous land was overtaken by genocide. The Cayugas should be welcomed back with a sincere apology for all of the past mistreatment. Why continue the grudge for another century? Union Springs could learn a lesson in history, and in the true meaning of Thanksgiving. "

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