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MD man pleads guilty in black-market cigarette scheme (big customer base with $8/pack NY tax)
Washington Post ^ | April 1, 2011 | Maria Glod

Posted on 04/02/2011 4:05:21 AM PDT by Cincinatus' Wife

A 34-year-old Bowie man acknowledged in federal court Friday that he participated in a ring that distributed more than 17 million black-market cigarettes, a scheme that prosecutors said cost the government more than $2.6 million in taxes.

Chun Chen, who goes by Eddy and owned a carryout restaurant in Maryland, pleaded guilty to conspiracy to commit extortion in U.S. District Court in Greenbelt...

The far-reaching probe became public last fall, when then-Prince George’s County Executive Jack B. Johnson (D) and his wife, Leslie, now a council member, were arrested.

Jack Johnson was indicted in February on bribery charges. Leslie Johnson (D-Mitchellville) is accused of destroying evidence......

..Nine people, including three Prince George’s police officers, have been charged.....

Prosecutors have said that Melhi paid then-Prince George’s police Sgt. Richard J. Delabrer, 45, of Laurel and others to safeguard the transportation of untaxed cigarettes and alcohol into Maryland and Virginia....

According to Chen’s plea agreement, Delabrer and another defendant began purchasing untaxed cigarettes from the undercover agent and reselling them.

One buyer was Chen, who then sold the cigarettes in New York, where local taxes are more than $8 per pack, court papers say. Prince George’s police Cpl. Chong Chin Kim, 42, also allegedly bought cigarettes, then resold them to New York buyers.

According to court papers, Maryland at the time imposed a sales tax of $2 per pack, and Virginia’s tax was 30 cents per pack. The Department of Treasury imposed a federal excise tax of $1.01 per pack.

Federal officials wiretapped Delabrer’s county-issued cellphone, and later a personal cellphone, intercepting thousands of calls, court papers say. Authorities recorded many calls about the cigarette and alcohol operation, the documents say, including some between Delabrer and Kim about payments for the contraband cigarettes.......

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Crime/Corruption; Culture/Society; Extended News; Government
KEYWORDS: cigarettes; itsthetaxesstupid; liquor; newcriminals; notabouthealth; sintax; smokenazis; smokes; smokesliquor; taxes

1 posted on 04/02/2011 4:05:24 AM PDT by Cincinatus' Wife
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To: Cincinatus' Wife

GE doesn’t have to pay taxes.

Why should anyone else?


2 posted on 04/02/2011 4:10:09 AM PDT by bigheadfred (Beat me, Bite me...Make Me Write Bad Checks)
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To: Cincinatus' Wife
in New York, where local taxes are more than $8 per pack

$8.00 per pack? What an extortion racket.

3 posted on 04/02/2011 4:12:57 AM PDT by csvset
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To: csvset
$8.00 per pack?

I had no idea.

4 posted on 04/02/2011 4:15:51 AM PDT by Cincinatus' Wife
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To: bigheadfred

Only, “the little people pay taxes.”


5 posted on 04/02/2011 4:16:36 AM PDT by Cincinatus' Wife
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To: Cincinatus' Wife
a scheme that prosecutors said cost the government more than $2.6 million in taxes.

Notice that the concern of the government is the loss(not really a loss)of tax money. No mention of these cigs "killing" people off with cancer cells. It has always been about the money and never about the health aspect, the health part was so they could fool people into going along with the outrageous taxes they dumped on cigs.

6 posted on 04/02/2011 4:17:37 AM PDT by calex59
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To: Cincinatus' Wife

And that is the point. Every working “little person” should go exempt. And “accidentally” not file next year. Or this year.


7 posted on 04/02/2011 4:26:38 AM PDT by bigheadfred (Beat me, Bite me...Make Me Write Bad Checks)
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To: Cincinatus' Wife
Johnson (D-Mitchellville), 59, and her husband, former county executive Jack B. Johnson (D), 61

Eric Holder's people.

Jack wears a hat like the old school gangsters. Here's a link to a WaPo pic, (my title) and a Wapo Article.

Crime does pay

Step toward plea in Leslie Johnson case

8 posted on 04/02/2011 4:26:58 AM PDT by csvset
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To: Cincinatus' Wife

I thought Congress was supposed to regulate interstate commerce.


9 posted on 04/02/2011 4:27:59 AM PDT by Jim Noble (The Constitution is overthrown. The Revolution is betrayed.)
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To: calex59

Our “Government” can piss away 2.6 million dollars after their first cup of coffee in the morning.


10 posted on 04/02/2011 4:29:42 AM PDT by Iowamerican
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To: Cincinatus' Wife

“a scheme that prosecutors said cost the government more than $2.6 million in taxes. “
*********************

...cost them...?????


11 posted on 04/02/2011 4:41:33 AM PDT by gunnyg ("A Constitution changed from Freedom, can never be restored; Liberty, once lost, is lost forever...)
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To: Cincinatus' Wife

This guy committed the worst crime there is, depriving the government of money.


12 posted on 04/02/2011 4:56:47 AM PDT by pnh102 (Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
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To: Cincinatus' Wife
… distributed more than 17 million black-market cigarettes …

How many people buy or sell individual cigarettes? I doubt these black marketers did. But of course, 17,000,000 cigarettes sounds a lot bigger than 85,000 cartons.

13 posted on 04/02/2011 5:03:35 AM PDT by R. Scott (Humanity i love you because when you're hard up you pawn your Intelligence to buy a drink)
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To: Cincinatus' Wife

Smuggling is a noble profession when it deprives criminal syndicate governments of cash.


14 posted on 04/02/2011 5:17:34 AM PDT by sergeantdave (The democrat party is a seditious organization and must be outlawed)
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To: Cincinatus' Wife

Talk about a conflict of interest. The govt. has no motivation to stop people smoking.


15 posted on 04/02/2011 5:31:00 AM PDT by Walkingfeather
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To: Cincinatus' Wife
New York, where local taxes are more than $8 per pack
Drive by any NY welfare office and tell me what percent DON'T smoke.
16 posted on 04/02/2011 5:42:32 AM PDT by oh8eleven (RVN '67-'68)
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To: Iowamerican
Our “Government” can piss away 2.6 million dollars after their first cup of coffee in the morning.

Give them a break, they can pay 2.6 million dollars FOR a cup of coffee.

17 posted on 04/02/2011 6:28:11 AM PDT by CPOSharky (The only thing straight, white, Christian males get is the blame for everything.)
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To: calex59
a scheme that prosecutors said cost the government more than $2.6 million in taxes.

OF course the notion that you can do the calculation of #packs x tax/pack and get a meaningful number is wrong. They would not have seen a fraction of that $2.6M. Moreover, more money for taxes on cigarets would have meant less money for something else. So, for 1 part cigarett you get 8 parts government. At that rate I vote for giving cigaretts away for free.

18 posted on 04/02/2011 7:36:52 AM PDT by AndyJackson
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To: Cincinatus' Wife

That’s $8/pack in TAXES. A pack can cost $11-$12 in NYC.

Regards,


19 posted on 04/02/2011 7:39:03 AM PDT by VermiciousKnid (Sic narro nos totus!)
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To: R. Scott
Or for comparison 1 truck load.
20 posted on 04/02/2011 7:41:21 AM PDT by justrepublican (Screaming like a "Vexatious requester" at a Wellstone memorial...........)
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To: bigheadfred
GE doesn’t have to pay taxes. Why should anyone else?

Ummmm, GE is a darling of liberal elites... the rest of us aren't. They get off scott free because they're 'green' - we pay through the nose...

21 posted on 04/02/2011 7:45:25 AM PDT by GOPJ (http://hisz.rsoe.hu/alertmap/index2.php - It's only uncivil when someone on the right does it.- Laz)
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To: VermiciousKnid
A pack can cost $11-$12 in NYC.

I remember when I thought $10 a CARTON was expensive! Around the time a carton cost $20 I quit. But by your numbers, a carton in NY today, costs between $110 and $120. Yowza!

22 posted on 04/02/2011 7:45:56 AM PDT by Cincinatus' Wife
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To: R. Scott
How many people buy or sell individual cigarettes? I doubt these black marketers did. But of course, 17,000,000 cigarettes sounds a lot bigger than 85,000 cartons.

They state it this way because cigarettes are actually taxed per cigarette as opposed to per pack or per carton.

That started who knows how long ago, back when different packs contained different numbers of cigarettes.

23 posted on 04/02/2011 7:52:09 AM PDT by Gabz (Democrats for Voldemort.)
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To: GOPJ; TheOldLady
we pay through the nose...

And I want to know how ya'll get away with that.

I have to pay out of another part of my anatomy.

24 posted on 04/02/2011 9:17:48 AM PDT by bigheadfred (Beat me, Bite me...Make Me Write Bad Checks)
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To: bigheadfred

Why do I keep seeing comments like these on here? A person who understands business should know that corporate taxes should be at zero because anythng above that gets passed on to us the consumer as a cost of doing business. If no business’ paid taxes it would increase margins allow companies to become even more compeitive with each other.


25 posted on 04/02/2011 9:34:04 AM PDT by Almondjoy
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To: Almondjoy; bigheadfred

You’re absolutely right.

But I think that Fred is talking about the double standard. Some corporations are forced to pay taxes while the ‘Rat’s darlings are not, like GE.


26 posted on 04/02/2011 9:41:04 AM PDT by TheOldLady
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To: Almondjoy

I’ve seen that argument before.

I think they should increase everyone’s taxes who earn below a certain limit. Maybe they could even impose a tax tax.

You would feel good about shouldering more of the tax liability.

It is only fair.


27 posted on 04/02/2011 9:50:33 AM PDT by bigheadfred (Beat me, Bite me...Make Me Write Bad Checks)
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To: Cincinatus' Wife
But by your numbers, a carton in NY today, costs between $110 and $120.

Seems like it would be cheaper to become a meth or coke addict, or at least about equal. Same with Pot.

28 posted on 04/02/2011 3:08:13 PM PDT by UCANSEE2 (Lame and ill-informed post.)
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To: Mears

bfl


29 posted on 04/02/2011 3:14:54 PM PDT by Mears
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To: TheOldLady

Then you would be assuming that GE is breaking the law, or being allowed to skirt the law. Do you have evidence of either?


30 posted on 04/03/2011 3:10:45 PM PDT by Almondjoy
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To: bigheadfred

I’m not sure what you are getting at. Are you saying I don’t pay taxes?


31 posted on 04/03/2011 3:12:50 PM PDT by Almondjoy
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To: Almondjoy

Out of their own mouths.


32 posted on 04/03/2011 3:20:06 PM PDT by TheOldLady
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To: Almondjoy

No, I don’t mean you don’t pay taxes. And yeah, corporations pass along tax costs down to the final end user. But what guarantee does that get that 0 corp. tax means poor people are going to benefit in the long run? None.

There might be a few more jobs, but the industrial base is shot to hell. It isn’t coming back.

Business generated revenue might be able to stem the debt and even pay it down. But they will raise taxes some way, some how.

EVERYBODY bitches about paying any taxes. But the majority in this country are greedy, self-serving SOB’s unwilling to do anything that might mean helping their neighbors, towns, ciities, states, or country.

It’s all me Me ME!

If anything happens, I think it might as well be the reset button.

The disparity between the rich and poor is increasing.

What is poor man going to do when he can no longer feed , house, and clothe his family? He’s going to crawl off in a hole and die?

I think not.

He’s gong to climb up on rich man’s hill, pop a cap in him, move into his house, screw his wife, and eat his food.

I don’t pretend to have an answer.

But there are a hell of a lot of people of every stripe, in this country, who aren’t worth the paper they are printed on.


33 posted on 04/03/2011 3:29:06 PM PDT by bigheadfred (Beat me, Bite me...Make Me Write Bad Checks)
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To: bigheadfred

I do share your anger. I think these CEO’s with their hundred million dollar paychecks are the problem. I’ve been in the game long enough to know that politics have just as much to do with someone rising to the top as geniue ability. But like you I don’t have a good answer. I don’t want the government telling people what they should get paid. I think people have to police themselves, unfortunately they are doing a bad job of it.


34 posted on 04/03/2011 4:37:10 PM PDT by Almondjoy
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