A possible criminal tax evasion case against the Cayuga Nation was delayed on Tuesday after the district attorneys in Seneca and Cayuga counties were asked not to move forward until after a pending injunction is handled.

Cayuga County District Attorney Jon Budelmann said Appellate Judge Nancy Smith asked him to wait until after a Jan. 12 court date, where the nation will seek an injunction, preventing his office from taking the case to a criminal court until after an appeal is heard. While there was no written order, Budelmann expected that Cayuga County Court would comply.

“Anytime someone with a lot of money uses it to interfere with a court case is disturbing,” Budelmann said. “They are trying to tie up a criminal court matter in the civil court.”

Budelmann said the setback would only be limited to court proceedings.

“This will not have an impact on a grand jury indictment, only the court process,” Budelmann said. “We can still present our case to a grand jury, we just won't take it to court until after that court date.”

Because grand jury indictments are sealed, Budelmann said he could not say whether or not the case has been presented to a grand jury or if they have made a decision.

The felony tax evasion investigation came after sheriffs' deputies in Cayuga and Seneca counties raided the nation's Lake Side Trading convenience stores in Seneca Falls and Union Springs for untaxed cigarettes on Nov. 25. During the search, deputies collected nearly 3.5 million untaxed cigarettes.

Budelmann said he estimated the state was losing nearly $250,000 in cigarette excise taxes a week in Cayuga County, and about $26 million a year from both stores.

If Smith does not grant the injunction, the attorneys will be allowed to push any charges into their respective courts while both sides continue preparing for an appeal, which will take place several months later.

The nation is appealing state Supreme Court Judge Kenneth Fisher's decision that deputies legally raided the two stores and that the district attorneys are allowed to conduct a felony investigation.

In a written decision, Fisher said the stores are not located on a recognized reservation and that the nation's sovereignty does not exempt them from state tax laws.

The tribe, along with other Indian nations in New York, have claimed they are exempt from collecting sales and excise taxes on their property because their businesses are protected by their sovereign nation status.