New York Man Sentenced for Smuggling Contraband Cigarettes

RICHMOND, Va. – A New York man was sentenced today to 18 months in prison for his role in a conspiracy to traffic contraband cigarettes that resulted in a tax loss of more than $1.6 million.

Ki Hin Lee, 31, of Flushing, pleaded guilty on June 20, 2017. According to court documents, Lee participated in a cigarette trafficking conspiracy that spanned from January 2015 to November 2016. Lee and another New York City resident traveled from New York City to Fredericksburg and Springfield in order to purchase bulk quantities of Virginia tax-stamped cigarettes from a Fredericksburg gas station owner. After completing their purchases, the pair transported the cigarettes back north to Staten Island, where they were sold on the black market. Lee eventually took over the role of courier and facilitator, and thereafter made at least 46 solo trips – renting large SUVs in order to maximize his carrying capacity – from Staten Island to Virginia. During these trips, Lee handed over tens in thousands in cash to purchase quantities of cigarettes ranging between 600 and 900 cartons. Lee then smuggled the cigarettes back to the Staten Island home of his New York City co-conspirator. All told, Lee personally smuggled at least 276,000 packs of cigarettes from Virginia to New York City for illegal re-sale, resulting in a tax loss of more than $1.6 million. 

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Keith Krolczk, Chief of Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Investigative Division, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Thomas A. Garnett prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-73.