Tobacco Facts.

Mississippi department of the Bureau of Alcohol, Tobacco, Firearms and Explosives seeks to seize $1.89 million in cigarettes and an airplane reportedly used in multimillion smuggling scheme that involved several Southeast states.

Any details of the investigation are yet to be revealed, however federal agents and local police officers raided warehouses in Mississippi, South Carolina and Kentucky during the investigation that took almost 24 months. According to reports, ATF authorities are trying to obtain court permission to confiscate money, cigarettes and the airplane, found in one of those warehouses. The charges have not been incriminated; however, according to an anonymous source there are two individuals involved in the contraband scheme.

Enforcement agency spokesman said the two suspects evaded from paying taxes in Kentucky by smuggling cigarettes via Mississippi.

Randy Benham, who owns Globe Distributing, based in Tupelo, Mississippi was charged with producing counterfeit invoices and tax stamps to make it look like cigarettes were distributed in Mississippi, whereas they were actually sold in other states.

ATF agents raided the venues owned by Benham during the investigation and as well searched cigarette plants in Kentucky and South Carolina.

Benham was not available over the phone this week, while his attorney refused to comment on the issue.

However, any court ruling on the ATF’s inquiry on the possible seizure has yet to be made.

According to revealed documents, undercover ATF agent, who worked at Globe Distributing during two years (while investigation took place) confirmed the company generated $1.89 million participating in the scheme that involved transporting counterfeit cigarettes to several states while falsifying documents confirming the cigarettes had been sold only in Mississippi.

Prosecutors filed a petition to forfeit that money contained in a bank account.

Authorities as well seek to seize an airplane 1982 Beech King Air C90 supposedly used in smuggling. The corresponding documents were filed to local court last month.

The Bureau of Alcohol, Tobacco, Firearms and Explosives spokesman said the illegal scheme worked in the following manner: after historical lawsuits filed by states against tobacco industry, in 1998, tobacco industry signed an agreement with governments of 46 states. It is known as Master Settlement Agreement and demands tobacco industry to make annual payments to the participating states.

By that time, Mississippi government already a similar settlement with tobacco industry, and therefore, has not participated in MSA. Thus, all the tobacco products distributed across Mississippi are due to the payments by the Agreement that are paid as additional taxes for each carton in conformity with MSA.

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