The New York State Department of Taxation and Finance today announced that two individuals arrested in the Albany area for illegally possessing untaxed cigarettes and untaxed tobacco have pled guilty to charges brought against them.

The individuals were part of an April 24 raid by the Tax Department on “roll-your-own” (RYO) cigarette outlets in the Capital District and Hudson Valley.  Albany County District Attorney David Soares prosecuted the two cases. Eight other cases associated with the raids are still being prosecuted. 

Zhuying Chen of the Tobacco House of Juan, Westgate Plaza, 911 Central Avenue, Albany, pled guilty in Albany City Court to a class A misdemeanor for possessing quantities of pre-rolled, untaxed cigarettes that were to be offered to the general public for sale.  Chen forfeited two RYO machines (valued at $35,000 each when new), one point of sale computer, 117 cartons of untaxed cigarettes and $11,000 in cash seized at the location.  Chen agreed to pay $12,000 in taxes, penalty and fines.

Cai Lin of Tobacco House of EA, 1892 Central Avenue, Colonie, pled guilty to the same charge.  Lin forfeited two RYO machines, one point of sale computer, one vehicle, and 140 cartons of untaxed cigarettes.  Lin agreed to pay $12,000 in taxes, penalty and fines.

Because cigarette taxes were not prepaid as required, these shops were able to sell cigarettes for as low as $35 a carton.  When sold legally, cigarettes can cost as much as $100 a carton for premium brands. 

"I thank District Attorney Soares for his prosecution of these criminals who attempted to circumvent the law by selling untaxed cigarettes,” said Commissioner of Taxation and Finance Thomas H. Mattox.  “Cigarette taxes in New York State are used to fund critical public health programs for our citizens.  Not only did these individuals cheat the State out of necessary funds, but they attempted to gain an unfair advantage over honest business owners who comply with their tax responsibilities."

The Tax Department was assisted in its undercover investigation by the New York State Police, the Department of Homeland Security and several local police departments.

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In New York State, 96% of taxes are paid by businesses and individuals who voluntarily meet their tax responsibilities. The remaining 4% is collected through the Tax Department's audit, collections and criminal investigations programs. Through its enforcement programs, the Department ensures fair tax administration for all New Yorkers.