NY sues WA company for selling untaxed cigarettes

Dec 24, 2012

The state Attorney General's Office has filed a lawsuit accusing a Washington-based tobacco manufacturer of illegally selling hundreds of thousands of untaxed cigarettes in New York State. WAMC's Dave Lucas has details.

The lawsuit against King Mountain Tobacco Company and its president, Delbert Wheeler, was filed Friday in U.S. District Court for the Eastern District of New York.

Attorney General Eric Schneiderman claims the company sells and distributes its cigarettes in New York without shipping them to a state licensed stamping agent as required by state tax laws.

Prosecutors say state police stopped a truck on Dec. 3 in Clinton County carrying 84,000 packs of unstamped King Mountain cigarettes, a potential tax loss to the state of more than $365,000.

Messages seeking comment from Wheeler and King Mountain were not immediately returned.

Copyright 2012 The Associated Press.