November 15, 2006

DA, NCPD Snuff Out Illegal Cigarette Ring

Eight arrested, scam cost Nassau County more than $1M in October

MINEOLA, NY - Nassau County District Attorney Kathleen Rice, Nassau County Police Commissioner James Lawrence and Nassau County Executive Thomas Suozzi announced this afternoon the takedown of an illegal cigarette ring that cost Nassau County governments more than a million dollars last month alone. The ring is responsible for selling untaxed cigarettes, obtained through a Native American reservation in Suffolk County, to businesses and distributors in Nassau, Queens and Bronx counties. Joining Nassau County law enforcement in the investigation and takedown were the New York State Police and the New York State Department of Taxation and Finance.

Wednesday’s early morning raid hit locations in the Bronx, Mastic Beach, Baldwin and Flushing. Seized was more than $750,000 in cash, 15 vehicles, a camper, two trailers, four guns and 41,000 cartons of untaxed cigarettes. Also seized were devices used to forge the stamps required on cigarette cartons.

Cigarettes sold in Nassau County are subject to more than $18 in taxes per carton. In New York City that tax is in excess of $30 per carton. However, cigarettes sold to retailers on sovereign Native American reservations are untaxed by local, state or federal governments, with the provision that they be sold only for personal use and within the boundaries of the reservation.

The amount of cigarettes seized today, if sold in Nassau County legally, would have generated $762,600 in tax revenue for local, state and federal governments. Rice said the investigation began in January of this year and is expected to uncover tens of millions of dollars in lost tax revenue.

“While dodging taxes is one of the oldest crimes in the book, the magnitude of this operation is simply amazing,” said Rice. “In a time when our local governments are struggling to fund schools, our families are getting taxed out of our homes, and we have more than 40 million Americans without health insurance, it’s important to think of the effect that these types of crimes have on our lives.”

“This investigation will save residents millions in lost tax revenue and is a great example of multiple law enforcement agencies working together for the benefit of the taxpayers,” said Nassau County Executive Thomas Suozzi.

Ronald Bell, owner of “The Outpost” on the Poospatuck Reservation in Mastic, Suffolk County, is thought to be the ringleader of the operation. The District Attorney believes Mr. Bell employed at least four to five drivers to make daily deliveries from the reservation to locations in Nassau, Queens and Bronx counties. The runs would transport anywhere from 1200 to 2400 cartons of untaxed cigarettes.

Charged with felony infractions of the tax law and Conspiracy in the Fifth Degree were Ronald Bell, 40, of Mastic Beach; Timothy Turan, 22, of Jamaica; Alexis Pastor, 26, of South Ozone Park; Yvette Mitchner, 38, of Mastic Beach; Ahmad Aldabesheh, 45, of the Bronx; Khalid Salaam Abdus, 38, of Baldwin; John Green, 59, of Brentwood; and Kee Hock Cheow, 44, of Brooklyn.

Each defendant faces a maximum of four years in prison if convicted of the charges. They are expected to be arraigned on the charges later today in First District Court, Hempstead.

Assistant District Attorney Anne T. Donnelly and Deputy Bureau Chief Joseph Dompkowski, both of the Rackets Bureau, are handling the case for the District Attorney’s Office under the supervision of Rackets Bureau Chief Rick Whelan.