Illegal Cig Dealers Snuffed By Cops

Three people have been arrested for allegedly engaging in the sale of untaxed cigarettes as a result of an ongoing investigation that also led to the seizure of more than 900 cartons of illegal, untaxed cigarettes valued at approximately $100,000 and nearly $35,000 in cash, it was an nounced.

Queens District Attorney Richard A. Brown identified the defendants as Liu Qin Feng, 34, of Bowery Street in Manhattan, Ben Chuan Chen, 37, of 60th Avenue in Flushing and Luis Robert Liendo Guillen, 56, of 91st Street in Jackson Heights and North east 4th Avenue in Miami, Fla.

The three defendants were charged in criminal complaints with first degree criminal possession of a forged instrument, third degree trade mark counterfeiting and violations of New York State Tax Law 1814 (Cig arette and Tobacco Products Tax). If convicted, the defendants each face up to 15 years in prison.

“Cigarette smuggling to evade state and local taxes is a multimillion dollar industry,” Brown said in a statement. “It is a highly profitable tax free cash business for those in volved in it. However, it cheats tax payers who must dip into their pockets to pay higher taxes. And it cheats the government as well by fu eling an underground economy which does not pay much needed state and city taxes. In [the] cases, it is estimated that the three defendants shortchanged New York State and New York City out of nearly $60,000 in tax revenue.”

Reportedly, as part of an ongoing long term investigation, two court authorized search warrants were exe cuted last Wednesday morning, June 15, at Chen’s Flushing residence and on a 2004 Honda minivan parked there. According to authorities, police allegedly observed Feng exit the res idence and enter the Honda’s rear passenger seat and Chen exit through

SEE SMOKES ON PG. 74 a basement door carrying a black plastic bag and enter the vehicle’s driver seat.

During a search of the residence and vehicle, police allegedly recov ered 793 untaxed cartons of ciga rettes, 431 counterfeit Virginia tax stamps, and $33,231 in cash.

In the second case, police exe cuted a search warran on June 15 as Liendo Guillen was leaving his resi dence carrying a black duffel bag. In side the bag was allegedly seven cartons of untaxed New York State cigarettes.

During a search of his residence, police allegedly recovered 120 car tons of untaxed cigarettes, $7,000 in purchased but unendorsed U.S. Postal money orders and $1,456 in cash.

It is alleged that numerous cartons of the seized cigarettes have been de termined to be counterfeit, while oth ers are legitimate products that either were purchased and taxed in Virginia or have a counterfeit Virginia tax stamp placed on them.

Brown said that all cigarette pack ages sold in New York City must bear a joint New York City/New York State tax stamp and only a licensed stamping agent can possess untaxed cigarettes and affix the tax stamp on the packages.

The arrests are the latest results brought about by the District Attor ney’s Crimes Against Revenue Unit (CARU), which proactively investi gates and prosecutes individuals and businesses that deliberately fail to pay tax obligations associated with legal and illegal activities. To date, over one million untaxed cigarettes have been seized, forfeited, and sur rendered this year.

The investigation was conducted by Detectives James Monaco and Dominick DiGennaro, of the District Attorney’s NYPD Squad, under the supervision of Sgt. Francis Teran, Lt. Keith P. Gallagher and Capt. John F. Zanfardino, and the overall supervi sion of Chief Louis M. Croce, Jr. and Chief of Detectives Phil T. Pulaski.

Assistant District Attorneys An drew H. Kaufman, chief of the Crimes Against Revenue Unit, and Carla L. Cheung will be prosecuting the cases under the supervision of As sistant District Attorneys Anthony M. Communiello, bureau chief of the District Attorney’s Special Proceed ings Bureau, and Oscar W. Ruiz, and the overall supervision of Executive Assistant District Attorney for Inves tigations Peter A. Crusco and Deputy Executive Assistant District Attorney for Investigations Linda M. Cantoni.

It was noted that criminal charges are merely an accusation and that de fendants are presumed innocent until proven guilty.