DTF Photos: Left, 1,726 untaxed cigars were seized at a South Pearl Street deli, along with contraband cigarettes. Right, tax stamps were illegally taped to cigarette packs at a Clinton Avenue deli

The New York State Department of Taxation and Finance said today that two retail stores in downtown Albany won’t be able to sell cigarettes and other tobacco products for up to six months – because they were caught with untaxed cigarettes. 

"Whether the amount is large or small, we take the possession and selling of untaxed cigars and cigarettes very seriously," said New York State Commissioner of Taxation and Finance Jerry Boone. "Throughout the state, our investigators are watching for this type of illegal activity.”

In both cases, the contraband products were discovered during routine regulatory inspections.   The Tax Department provides a “Certificate of Registration” to each retail establishment that it authorizes to sell cigarettes and tobacco products. The Department’s criminal investigators periodically visit those stores to ensure legal compliance.

In each of these cases, as a result of the violations, the business’s Certificate of Registration was suspended, in addition to criminal charges. The Certificate of Registration can be suspended for up to six months for a first violation.

333 South Pearl

Investigators entered Chicho’s Chicken and Deli at 333 South Pearl Street to carry out a routine inspection, and discovered that 1,726 untaxed cigars and 20 cartons of untaxed cigarettes were for sale at the deli.

Juan Carlos Reynoso-Fabian, 49, who lives at the same address as the business, was charged with crimes for possession of untaxed tobacco and possession of untaxed cigarettes for sale.  He was issued two tickets and is scheduled to appear in Albany City Court on November 5^th.  

Reynoso-Fabian currently is on parole from a five to 15 year prison sentenced he received several years ago for dealing in illegal cigarettes and counterfeit tax stamps.

335 Clinton

Investigators found 20 cartons of contraband cigarettes at the USA Grocery Deli 1 located at 335 Clinton Avenue after a routine inspection. 

Mustafa Abdulla Algaithi, 41, of 215 3^rd Street, Albany, was charged with crimes for possession of untaxed cigarettes for sale, and altering the tax stamps affixed to cigarette packages.  He was issued two appearance tickets. 

All cigarette packs sold in New York must have a New York State cigarette tax stamp affixed to the bottom, verifying that the excise taxes have been paid. Investigators believe Algaithi removed portions of tax stamps affixed to legal cigarette packs. He then taped the removed stamp portions to illegally possessed cigarette packs that had no stamp, in an effort to make it appear that those cigarettes were taxes and legal.

A criminal complaint is only an accusation and the defendants are presumed innocent until proven guilty.  These cases will be prosecuted by the Albany County District Attorney’s Office.

Report fraud

You can report tax evasion and fraud online at the Tax Department's Web site or by calling 518-457-0578. The information is kept confidential.