- New York AG Letitia James reached a settlement with Canada-based cigarette manufacturer Grand River Enterprises Six Nations, Ltd. and its New York-based wholesaler, Native Wholesale Supply Company, Inc., to resolve allegations that they violated the federal Contraband Cigarette Trafficking Act and Prevent All Cigarette Trafficking Act, the New York Tax Law, and the New York Public Health Law by shipping, selling, and distributing cigarettes in the state without paying state taxes.
- According to the AG’s complaint, Native Wholesale, which was not licensed by New York State to distribute or sell cigarettes, allegedly imported millions of cartons of Grand River’s cigarettes into New York and distributed them statewide without going through the requisite state licensing agent stamping for pre-payment of state taxes, with Grand River’s knowledge.
- According to the proposed Stipulated Final Judgment and Order, Grand River and Native Wholesale will pay $50 million. They will also be permanently enjoined from selling untaxed cigarettes in New York; must cooperate in any investigation of their sale of untaxed cigarettes; and must restrict sales of unstamped cigarettes to licensed cigarette stamping agents, federally bonded facilities, or other specific entities, among other things.