Two plead guilty in contraband cigarette case
OXFORD — Two Kentucky men have pleaded guilty in Mississippi to federal charges of falsifying documents to evade the payment of taxes through the sale and distribution of contraband cigarettes.
Acting U.S. Attorney William C. Martin said Robert Ammerman of Falmount, Ky., and Mike Ammerman of Cynthiana, Ky., entered the pleas yesterday before a judge in Oxford. A sentencing date is pending.
The Ammermans operated Farmer’s Tobacco Warehouse in Cynthiana.
Martin said an investigation showed the Ammermans were supplying large quantities of cigarettes to Mississippi wholesalers at a price that could not cover the required taxes and fees. In return, the wholesalers kept the cigarettes “off the books,” which meant they were not reported to the federal government and taxing authorities in Mississippi and Kentucky.
Martin said the two men pleaded guilty to a one-count information that accused each of making and causing to be made false monthly tobacco reports. A sentencing date is pending.
Martin said each man faces a maximum possible penalty of up to three years in prison; up to a $250,000 fine; and up to a year supervised release.
He said the Ammermans also agreed to forfeit to the United States $8 million representing the proceeds of their scheme.
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Twang & Tourism: The Country Music Trail
Top Posts & Pages
- Officials set hunting dates for birds; expands dove season by 20 days
- Brandon man hauls in record 756-pound alligator
- Is cotton looking too good? Farmers facing weaker prices
- Woman found guilty of murder in buttocks injection case
- FLIPPING OUT — Flipping houses is popular in much of the country, but in Mississippi ...
- More than a dozen school districts sue state over funding
- REVVING UP — Motorcars of Jackson is preparing to open its first-ever showroom on I-55
- McDaniel delays decision on whether to appeal dismissal of lawsuit
- Nehi Bottling Company has been a Cleveland fixture for 85 years