NYC Cracks Down On Untaxed Cigarette Sales

New York City has accused several cigarette dealers on a Long Island Indian reservation of secretly defying a court to stop selling untaxed cigarettes to the general public, the New York Post reported.

In August, a federal judge ruled that the largest shops on the Poospatuck reservation were to cease the sale of untaxed cigarettes to the general public, calling the sales illegal.

All shops agreed to abide by the ruling, but on Wednesday, lawyers for the city filed a motion in federal court alleging that three dealers still were conducting business through newly formed cigarette stores not covered by the court order.

The city has asked US District Court Judge Carol Amon for thousands of dollars in penalties against the three violators.

One is store manager is Rodney Morrison, a one-time cocaine dealer who made a fortune after giving up drugs to open his smoke shop. He already faces a likely prison term over his dealings in untaxed cigarettes. He has been in prison since 2004 on an unrelated charge, but is accused of directing the operations of his business over the phone from behind bars.

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