KANSAS CITY, Mo. – Three Canadian men pleaded guilty to various charges involving the alleged purchase, transport and sale of untaxed cigarettes bought in Missouri from undercover agents and sold mostly on Indian reservations in New York state, court documents said.
The three men, David Bishop, his brother Mark Bishop and Piotr Hoffmann, all of Montreal, pleaded guilty earlier this month to federal charges initially filed in August 2013. In that 44-count indictment, prosecutors from the U.S. District Court for the Western District of Missouri, Western Division, charged 17 people for allegedly taking part in the illegal enterprise.
From July 2010 through January 2012, those named in the indictment allegedly bought about 600,000 cartons of cigarettes in Missouri and transported most of them to New York where they were sold on Native American reservations. The cigarettes were allegedly transported without paying the $4.35-per-pack tax that the state requires. Officials estimated that New York state lost $8.1 million in uncollected taxes.
Hoffmann and Mark Bishop pleaded guilty on June 8 to aiding and abetting contraband cigarette trafficking, while David Bishop, who owned and operated DKB Trade Concepts, Montreal, pleaded guilty on June 7 to conspiracy to commit wire fraud and contraband cigarette trafficking. Hoffmann and Mark Bishop admitted to transporting the product while David Bishop admitted to an operational role, court documents said.
All three face a maximum, five-year prison sentence and up to $250,000 in fines.
In a similar case, federal officials recently raided several retail establishments in the St. Louis area, including convenience stores, resulting in the indictment of 35 individuals.
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