NYS Tax and Finance, Brooklyn DA Extinguish Major Cigarette Smuggling Operation

New York State Taxation and Finance Commissioner Arthur J. Roth and Brooklyn District Attorney Charles J. Hynes today announced the arrest of a Brooklyn man on felony charges in connection with a smuggling operation supplying untaxed cigarettes to restaurants in the borough.

Jiuyan Liu, 45, of 770 58^th Street, was charged Thursday with possession for sale of untaxed cigarettes, attempting to evade and defeat the state cigarette tax and tampering with evidence, after a search warrant was executed at his residence, culminating a yearlong investigation.

The search turned up about 3,000 cartons of untaxed cigarettes, said Commissioner Roth and District Attorney Hynes.

"We consider this a significant arrest, cutting off one of the tentacles of the cigarette smuggling hydra," said Commissioner Roth. "Evading the cigarette tax puts an unfair burden on legitimate business people who do pay their fair share of taxes. Working with DA Hynes, we have been able to put an end to this operation."

"This office takes the smuggling of cigarettes as seriously as we would any other items of contraband," District Attorney Hynes said, "particularly when they can wind up in the hands of children."

The cigarettes had been transported to New York from Virginia and many of the cartons had no tax stamp since they were purportedly destined to be sent overseas. Others had a Virginia tax stamp, making them unsaleable in New York State.

Liu had already been arrested September 14th on a misdemeanor charge after he allegedly sold untaxed cigarettes to a Brooklyn restaurant, said Commissioner Roth and District Attorney Hynes.

The case was investigated by state Department of Taxation and Finance investigators and will be prosecuted by the Brooklyn District Attorney’s Office. The investigation is continuing.

All charges are only allegations, and the defendant is presumed innocent until convicted in a court of law.