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
Top Posts & Pages
- UMMC reaching out after death of high school football player
- Former Godwin CEO Danny Mitchell dies at 66
- MDOT: Work on I-269 is on schedule, several phases at halfway point
- Margaritaville owner files for bankruptcy before landlord hearing
- Delta Council says condition of Highway 6 'of crisis dimensions'
- Northrop Grumman lands $354M Air Force contract for Global Hawks
- BLAKE WILSON: Danny Mitchell was a remarkable business leader, a better friend
- Severstal completes the sale of Columbus plant to Steel Dynamics
- Another marker going up on Mississippi Country Music Trail