Saturday, March 19, 2011

Pittsburgh Post-Gazette

http://www.post-gazette.com/pg/11078/1133390-54.stm

Federal prosecutors have filed papers to permanently seize all non-cigarette tobacco products confiscated in a raid last month on a Sharon business by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.

In a civil forfeiture action filed in U.S. District Court in Pittsburgh, prosecutors said USA Trading Corp. is under investigation for money-laundering in connection with a scheme to avoid excise taxes in Michigan and New York.

The U.S. attorney's office said the company used commercial couriers to ship thousands of pounds of smokeless tobacco, cigars and other non-cigarette products to its customers in those states, knowing that the customers would not report the purchases to excise tax authorities.

Prosecutors said the scheme generated thousands of dollars and operated from January 2008 until Feb. 9, when ATF agents from Pittsburgh and other cities raided the company's facility on West Budd Street.