Feds bust 2 in $3M smoke tax ring

Agents of the federal Bureau of Alcohol Tobacco and Firearms (ATF) came to Flushing recently, arresting a father-and-son team for allegedly purchasing untaxed cigarettes and selling counterfeit New York State tax stamps to undercover agents.
Guang Ming Wang, 58, and his son, Feishan Wang, 30, both of 135-06 62nd Avenue in the Queensborough Hill section of Flushing, were arrested by ATF Agents without incident on Wednesday, April 1.
According to authorities, the elder Wang arrived at a “prearranged meet location” with $312,000 in cash and more than 200,000 counterfeit tax stamps.
Feds say that as the cash and stamps were exchanged for a shipment of 12,000 cigarettes (60 cartons,) he was immediately taken into custody. An illicit sale of more than 10,000 cigarettes violates federal contraband laws.
Feishan Wang was arrested at the same time, in front of 144-05 29th Road in North Flushing, a location described by an the ATF as a “stash house.”
According to Department of Justice spokesperson Robert Nardozo, the defendants were initially arrested on a federal conspiracy charge, to which contraband cigarette and forged tax stamp charges were added at their arraignment.
The Wangs each face five years in a federal prison if convicted, according to Ronald Turk, Special Agent in Charge of the ATF New York office.
“In these hard economic times, selling untaxed or counterfeit taxed cigarettes are putting our law abiding merchants at a huge disadvantage,” Turk pointed out, adding “The legal tax revenue collected on tobacco products goes towards improving our school, our highways and our quality of living.”
“The selling of untaxed cigarettes must be closely watched and snuffed out as soon as possible,” Turj said.
According to an ATF spokesperson, the arrests resulted from a nine month investigation, during which they allege Guang Ming Wang purchased a total of 31,980 cartons of untaxed cigarettes for $846,000 and also sold undercover agents 103,950 counterfeit NY State/City tax stamps for $4,000.
After deals, both men were observed by agents unloading the contraband at their home address and the 29th Avenue site, according to authorities. Federal search warrants were executed at both locations after the arrests.
At a price of $10 per pack, the 12 alleged undercover deals are said to have a street value of more than $3.1 million.
New York tax stamps are worth $4.25 each, bringing the street value of the counterfeits allegedly sold during the investigation to more than $440,000.
Feds say the two conspired to deprive New York State and City of at least $1.8 million in tax revenue through their actions.
Feishan Wang was released on $150,000 bond. His father, Guang Ming Wang was “in the hospital” at last report. He would be released to home detention under a $150,000 bond upon his release from the hospital and required to wear an electronic anklet, Nardozo said.