Raids were carried out across the state Wednesday, including one at the Alto Grocery in Habersham County, shutting down the store.
Officials with the Bureau of Alcohol, Tobacco, Firearms and Explosives said in a statement that 50 warrants were issued as part of the sting, which involved several agencies including the Georgia Attorney General's Office and police in Gwinnett County and Lawrenceville.
Authorities say many of the suspects are gas station owners or tobacco wholesalers. Officials say many of them were able to obtain counterfeit tax stamps for cigarettes and cigars.
ATF Atlanta Special Agent In Charge Scott Sweetow said the case involves ``pure and simple organized crime.''
Those officials executed an arrest warrant Wednesday afternoon at Alto Grocery in Alto, shutting down the store.
"This investigation, we have a total of seven search warrants and 50 arrest warrants that we executed today," said Special Agent Richard Coes, public information officer for the ATF. "Many of these are facing racketeering charges as well because they're loosely organized."
Those warrants involved the illegal possession, sale and distribution of contraband cigarettes and followed a more than three-year investigation to help the state deter criminals from defrauding the state out of millions of dollars in tax revenue.
Coes said those arrested are "individuals defrauding the state and the U.S. government by avoiding excise tax on tobacco products. They are using false state tax stamps. Ultimately, they are defrauding the government of could be millions of dollars."
"Those engaged in the manufacturing and distribution of contraband tobacco products are able to reap substantial profits by avoiding payment of federal and state taxes," said ATF Atlanta Field Division Special Agent in Charge Scott Sweetow in a statement. "Using a wide variety of sophisticated techniques, ATF disrupts and eliminates criminal organizations by identifying and arresting offenders who traffic illegal tobacco products. It remains ATF's goal to ensure that all tobacco businesses are competing on a level playing field. The defendants that were arrested today made it nearly impossible for legitimate businesses to compete and are accused of defrauding the state out of millions of dollars in tax revenue. Those funds could have been used for the betterment of our communities."
"Today's successful operation is the result of a strong collaborative effort among federal, state and local law enforcement," said State Attorney General Sam Olens in a press release. "By working together as a cohesive unit, our law enforcement partners were able to identify and apprehend individuals participating in racketeering activity, which included defrauding the state and federal governments of revenue by evading cigarette and cigar excise taxes. These arrests send a strong message that if you do not play by the rules in Georgia, you will be prosecuted to the fullest extent of the law."
"I have no information other than it was Lawrenceville and ATF," said Alto Police Chief Tim Vaughan Wednesday afternoon. Vaughan's department and the Habersham County Sheriff's Office learned of the operation after the warrant in Alto had been executed.
(AccessNorthGa.com's Rob Moore contributed to this story.)
Further details, including the names of those arrested, are forthcoming as part of this developing story.
http://accesswdun.com/article/2011/10/242913