NEW YORK (WKBW) — New York Attorney General Letitia James announced a Canadian cigarette manufacturer and Western New York distributor evaded state taxes on millions of cigarettes sold in New York.
AG James announced a $50 million agreement resolves the allegations against Grand River Enterprises Six Nations, Ltd. based in Canada, and its wholesaler, Native Wholesale Supply Company, Inc., located in Western New York.
The companies were accused of bringing millions of cartons of unstamped cigarettes into New York from Canada.
“Hardworking New Yorkers pay taxes and so should multi-million-dollar companies. Regulating and taxing cigarettes is a critical tool to protect public health from the deadly dangers of tobacco. Today’s agreement enforces New York’s laws and will stop the overflow of unstamped cigarettes into New York. I will continue to enforce the law against companies and individuals who flout New York state laws and put our residents in jeopardy.”
- Attorney General James
In addition to paying $50 million, the companies will have to:
- Create and maintain records of all of the Grand River cigarettes that enter New York and make those records available to OAG upon request;
- Obtain statements from out-of-state customers indicating that they do not intend to reimport any unstamped cigarettes back into New York;
- Cooperate with OAG when OAG is conducting an investigation into sales of unstamped Grand River cigarettes, or the sale of any unstamped cigarettes made by defendants;
- Utilize authorized common carriers to transport unstamped cigarettes while they are transiting through New York; and,
- Restrict sales of unstamped cigarettes to licensed cigarette stamping agents, federally bonded facilities, and other specified entities.
