Inside ICE: Volume 2, Issue 9

ICE Cracks California Cigarette Trafficking Ring

Riverside, Calif.—A nearly three-year undercover investigation into contraband cigarette trafficking in Southern California culminated last week with the arrest of 11 suspects and the seizure of more than $250,000 in currency.

The investigation, led by ICE and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), led to the seizure of more than 5,000 cartons of contraband cigarettes and approximately 3,800 counterfeit California tax stamps. Investigators estimate that the trafficking ring cost the government and industry more than $1 million in lost taxes and revenues.

“Trafficking in counterfeit cigarettes is a multi-billion dollar international enterprise that robs financially strapped states like California of badly needed revenues,” said Gary Pinkava, Assistant Special Agent-in-Charge for ICE investigations in Riverside and San Bernardino County. “ICE is working with its law enforcement partners to shut down schemes like this that enrich criminals and criminal organizations at the expense of our economy.”

Court documents show that several of the defendants in the case orchestrated a scheme to import and distribute counterfeit cigarettes, primarily from China. It is alleged the defendants affixed counterfeit tax stamps onto hundreds of thousands of packs of cigarettes. Many of these cigarettes were then distributed or delivered to smoke shops throughout the area.

ICE and ATF received substantial assistance in the case from the California Board of Equalization, the Los Angeles County Sheriff’s Department, the Internal Revenue Service and the Federal Bureau of Investigation.

If convicted, the defendants face up to five years in prison and a $250,000 fine on each count related to cigarette smuggling and trafficking.

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ICE Cracks California Cigarette Trafficking Ring

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Inside ICE is an e-newsletter produced by the ICE Office of Public Affairs to inform the public about the mission, operations and activities of U.S. Immigration and Customs Enforcement. Please send comments and contributions to Russ Bergeron, Editor.

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