Queens Raid Nets $3.4M in Cigarettes
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MINEOLA — Authorities seized nearly 600,000 packs of cigarettes with brand names like Marlboros and Newports, half of which are suspected of being counterfeits from China, prosecutors announced today.
Three Chinese men were arrested in the raid late last week at a warehouse in the Corona section of Queens, Nassau County District Attorney Kathleen Rice said at a press conference. The cigarettes have an estimated street value of more than $3.4 million.
Dozens of cartons of well-known cigarette brands — as well as piles of cash — were arrayed on conference tables surrounding the podium. Many of the cardboard boxes holding the cartons were stamped “Made in China.”
Also seized were counterfeit sneakers, as well as $350,000 in cash.
Because the counterfeits originated in China, they were not subject to any regulatory review of their ingredients and could contain “dangerously high levels of tar and nicotine,” Queens District Attorney Richard A. Brown said.
Prosecutors estimated that the potential lost tax revenue from the cigarettes was more than $1 million.
“When you couple the financial blow these crimes have on local budgets with the potential health risks the counterfeit cigarettes can pose to their consumers, it becomes imperative we crack rings like this one,” Ms. Rice said.
Mr. Brown said the suspects were arraigned over the weekend on charges of forgery and trademark counterfeiting, as well as violations of state tax laws.
They were held on bail ranging from $250,000 to $500,000 and face up to 15 years in prison if convicted on the forgery charge, and another four years on the tax violations.
Mr. Brown said the counterfeit and untaxed cigarettes are sold at a discount to “mom and pop” retail stores throughout the metropolitan region, who then resell them to customers at traditional prices.
Besides the lost tax revenue, Ms. Rice noted that the counterfeit cigarettes do not adhere to New York state law, which requires that “fire safe” cigarettes include a mechanism designed to extinguish the cigarette automatically after a brief period of time.
The raid and arrests followed a six-month investigation that began when police received a tip that illegal cigarettes were being sold on Long Island, Ms. Rice said.
