'Explosion of Cigarette Smuggling Going on'; 9 Indicted in 5 Unrelated Cases

The Washington Times (Washington, DC), September 23, 2011 | Go to article overview

'Explosion of Cigarette Smuggling Going on'; 9 Indicted in 5 Unrelated Cases


Byline: Andrea Noble, THE WASHINGTON TIMES

Maryland officials on Thursday announced the indictments of nine people accused of cigarette smuggling in connection with a stepped-up effort to cut down on the illicit tobacco trade.

In the last fiscal year, Maryland's comptroller's office arrested 115 people for cigarette smuggling, double the number it arrested the year before, as officials see more people resorting to profitable black-market sales.

There is an explosion of cigarette smuggling going on, said Maryland Comptroller Peter V.R. Franchot, whose office enforces state cigarette and tobacco tax laws. I'm not sure if it's the bad economy or the fact that Virginia has the lowest tax rate in the country and Maryland has one of the highest.

Cigarette taxes in Virginia are 30 cents per pack, while in the District and Maryland, taxes are $2.50 and $2 per pack respectively. Cigarette smugglers profit from buying large quantities of cigarettes in Virginia and transporting them to states where the tax is higher, selling them to stores or even from the trunks of their cars and pocketing the difference in price, Mr. Franchot said.

The nine people who were arrested in Maryland after crossing into the state from Virginia with thousands of packs of cigarettes in tow face charges of possession, transport and conspiracy to transport unstamped cigarettes. The penalty for the crime is a maximum of two years in prison and a fine of $50 per carton of cigarettes, Prince George's County State's Attorney Angela D. Alsobrooks said.

Officials announced the indictments outside the Prince George's County Courthouse in Upper Marlboro in front of a large display of previously confiscated cigarettes at the county courthouse. The display drew stares from passers-by, some of whom asked if officials were giving the packs away.

The nine people indicted were arrested in five unrelated incidents in July and August. …

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