A Bristol Borough business has been connected to tobacco smuggling after a federal investigation.
Capital Trade Inc., a tobacco wholesaler that state documents list as being in the 900 block of Canal Street in Bristol Borough, was involved in a scheme that transported close to $40 million worth of tobacco from Pennsylvania to New York without paying millions of dollars in New York excise taxes, according to the U.S. Attorney for the Eastern District of Pennsylvania’s office.
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Ramzi Al Najar, 43, of Staten Island, New York, was convicted recently after a week-long jury trial before U.S. District Court Judge Petrese Tucker.
Al Najar and unnamed associates created fake documents and invoices with Pennsylvania and New York regulators. The false documents underreported the amount of tobacco sold, authorities said.
In addition, Al Najar did not register and report as an interstate seller of smokeless tobacco as required by the Prevent All Cigarette Smuggling Act (PACT Act), authorities said.
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“Smuggling tobacco in order to evade taxes costs state and local jurisdictions millions of dollars per year. Utilizing our unique customs and law enforcement authorities, Homeland Security Investigations is positioned to target and investigate these types of crimes. Our special agents will continue tracking down criminals like Mr. Al Najar and his co-conspirators along with our law enforcement partners so they can be held accountable for their crimes,” said William S. Walker, acting special agent in charge of the U.S. Department of Homeland Security Homeland Security Investigations Philadelphia office.
U.S. Attorney William McSwain said Al Najar “attempted to skirt the system and cheat everyone who pays taxes on tobacco products.”
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“The defendant has to play by the rules, just like everyone else, or suffer the consequences,” he said.
In addition to Homeland Security Investigations, the Food and Drug Administration Office of Criminal Investigation; Pennsylvania Attorney General’s Office; Bureau of Alcohol, Tobacco, Firearms, and Explosives; the New York State Department of Tax and Finance, and the Pennsylvania Department of Revenue.
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