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Cigarette Smugglers Funnel Money to Terror Groups, Report Finds (Native American cigs fund terror)
Fox news ^ | Tuesday , April 29, 2008 | By Catherine Herridge

Posted on 04/29/2008 5:11:19 AM PDT by Behind Liberal Lines

Cigarette smuggling is generating millions of dollars every year that can be reaching terrorist groups, including Hezbollah, Hamas and Al Qaeda, according to law enforcement sources. In a single case, $100,000 was sent to Hezbollah.

A 15-page report congressional report includes intelligence from law enforcement as well as New York State’s Department of Taxation and Finance.

Cigarette smuggling is generating millions of dollars every year that can be reaching terrorist groups, including Hezbollah, Hamas and Al Qaeda, according to law enforcement sources. In a single case, $100,000 was sent to Hezbollah.

One of the key issues... is a potential flaw in New York State policy...there is a policy in the state of “forebearance,” or refusing to collect on sales of Native American tax-free cigarettes to non-Native Americans.

it has effectively created a safe haven for smugglers. In some cases... a well-organized operation can buy cigarettes tax-free on New York’s Indian reservations and sell them at a great profit in the New Yock City area, generating up to $300,000 per week with a loss of up to $576 million in tax revenues to New York State.

nearly 60 percent of all convenience retail outlets in New York City are now Arab-owned, primarily families of Lebanese, Yemeni, Jordanian and Palestinian descent. While the vast majority of retailers are operating above board, some are not.

these retailers can funnel their profits from the sale of cigarettes to terrorist groups in the Mideast. this “tobacco and terror” relationship has been found in a handful of recent cases.

“…the infamous ‘Lackawanna Seven’ reportedly received funding from an individual named Aref Ahmed for their travel from Buffalo to Afghanistan to attend an al Qaeda training camp,” the report says, referring to a group of American-born men of Yemeni descent who pleaded guilty to terror training.

(Excerpt) Read more at foxnews.com ...


TOPICS: Crime/Corruption; Culture/Society; Foreign Affairs; Front Page News
KEYWORDS: cigarettes; contraband; indian; jihadinamerica; moneytrail; pufflist; terrorism; tobacco
So what did New York State do this month?

Why, raise the tax on cigarettes more while still refusing to enforce the smuggling laws.

So even more cash will be going into Hezbollah's pocket.

Brilliant thinking from the "Evil Empire State" state once more.

1 posted on 04/29/2008 5:11:19 AM PDT by Behind Liberal Lines
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To: Behind Liberal Lines

Gov is getting a kick-back.


2 posted on 04/29/2008 5:13:47 AM PDT by wolfcreek (I see miles and miles of Texas....let's keep it that way.)
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To: Behind Liberal Lines

The solution is pretty simple- cut tobacco taxes. I pay $16 a carton at the reserve while prices in the city are in the $70 range.


3 posted on 04/29/2008 5:15:58 AM PDT by Squawk 8888 (TSA and DHS are jobs programs for people who are not smart enough to flip burgers)
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To: wolfcreek

Wouldn’t surprise me. When Spitzer was AG he was foaming at the mouth to shut down the smuggling ring but Pataki refused to allow it. But as soon as Spitzer became governor (and “coincidentally” after using an Indian casino developer’s private jet to campaign in) he dropped the plans to enforce the law.

There’s gotta be payoffs to all these creeps.


4 posted on 04/29/2008 5:16:43 AM PDT by Behind Liberal Lines
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To: Squawk 8888
The solution is pretty simple- cut tobacco taxes. I pay $16 a carton at the reserve while prices in the city are in the $70 range.

I don't disagree with you. But if they won't do that, they need to enforce the law equally.

5 posted on 04/29/2008 5:17:43 AM PDT by Behind Liberal Lines
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To: Behind Liberal Lines

It’s the business model for organized criminals.


6 posted on 04/29/2008 5:20:37 AM PDT by wolfcreek (I see miles and miles of Texas....let's keep it that way.)
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To: Behind Liberal Lines
Cigarette smuggling is generating millions of dollars every year that can be reaching terrorist groups

Why did the author use the words can be instead of is? Hmmm?

7 posted on 04/29/2008 5:20:50 AM PDT by McGruff (Rush won't defeat Obama. Rev. Wright will.)
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To: McGruff

“Why did the author use the words can be instead of is? Hmmm?”

Because the author knows the whole premise is crap. This is just an attempt to collect more taxes and it’s not working the way the states wanted.


8 posted on 04/29/2008 5:56:50 AM PDT by live+let_live
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To: Behind Liberal Lines
a well-organized operation can buy cigarettes tax-free on New York’s Indian reservations and sell them at a great profit in the New Yock City area, generating up to $300,000 per week with a loss of up to $576 million in tax revenues to New York State.

I have a problem with that statement and I'm not talking about the typo. How can it cost NY $576mil when it only "generates" $300,000 per week?

9 posted on 04/29/2008 6:29:24 AM PDT by Graybeard58
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To: Graybeard58

Good question. $300k x 52 = $15.6 MM I knew NY taxes on cigs were cheap but 33x cost? Wow, time to start stuffin’ your own!


10 posted on 04/29/2008 6:39:46 AM PDT by ProfoundMan (See my profile for hundreds of little freeper pics!)
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To: Behind Liberal Lines

Cigarette smuggling is a direct result of states drastically raising cigarette taxes for social engineering and mostly to make money on the backs of social pariahs like smokers. This is little different than national when Prohibition fueled bootlegging by organized crime.


11 posted on 04/29/2008 6:49:08 AM PDT by The Great RJ ("Mir we bleiwen wat mir sin" or "We want to remain what we are." ..Luxembourg motto)
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To: Behind Liberal Lines

Criminal groups will always use the disparity between governments with high taxation or tariffs, banned substances, or a large disparity between prices to make money (the last being legal trade too). the problem is that terrorist groups being criminal in nature use all criminal methods to make money. Smuggling is highly lucrative for them and cigarettes are just the tip of the problem. Smuggling cigarettes into NY has been going on for years before the terror groups got into the act but now with citizens knowing buying illegal goods and don’t care that the money is going to those who would kill them is moronic at best. My favorite stupid in a no stupid zone are the drug users who get their illegal drugs grown processed and distributed by terrorist groups especially the FARC and Al-qaeda into the US.


12 posted on 04/29/2008 7:11:54 AM PDT by Liaison
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To: Behind Liberal Lines

Tax free cigarettes just taste better.

Nanny is a great big ‘ho.


13 posted on 04/29/2008 7:27:20 AM PDT by NaughtiusMaximus (Bible toting, bitter and armed with slashing sarcasm.)
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To: Behind Liberal Lines
“Native American cigs fund terror”

This is incorrect. It should be “Greedy government taxation on cigs fund terror.” If taxes weren't so high on cigarettes there wouldn't be any incentive to smuggle cigarettes and their wouldn't be be any money going to terrorist groups.

Absurdly high taxes, just like prohibition, is like the government granting that market to criminals and terrorists. It is a gift to them, practically a request for them to create a black market dealing in those products. Criminals and terrorists love high taxes and prohibition because it gives them the opportunity to make lots of money.

If you ask them, they would love for the government to bring back alchol prohibition too. They could really make some money then.

14 posted on 04/29/2008 7:56:33 AM PDT by monday
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To: Squawk 8888

The solution is pretty simple- cut tobacco taxes. I pay $16 a carton at the reserve while prices in the city are in the $70 range....

Politicians will never go for that...they get to much money from cigs.

So guess what?....In a round about way, our own politicians and government supports terrorists!....


15 posted on 04/29/2008 9:57:25 AM PDT by AngelesCrestHighway
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To: Behind Liberal Lines
No mention of the real cure to the problem - eliminating the HUGE state and city taxes on a legal product.

Our fellow citizens created this black market, they can live or die with the consequences as far as I'm concerned.

16 posted on 04/29/2008 7:57:29 PM PDT by elkfersupper
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