Post by Moon Seeker on Oct 19, 2008 16:32:09 GMT -5
Tobacco wholesaler indicted: He is accused of defrauding state, Indian tribes
(Tulsa World (OK) Via Acquire Media NewsEdge) Oct. 18--View a PDF of the indictment of tobacco wholesaler Gary L. Hall. tulsaworld.com/hall
Tobacco wholesaler Gary Lester Hall has been indicted in federal court on allegations that he organized a $25 million tax scheme to defraud Oklahoma and its Indian tribes out of millions of dollars in cigarette tax revenues, records show.
Hall, 66, and seven other defendants were charged Wednesday in a 43-count federal indictment in U.S. District Court in Kansas.
Hall is the owner of Sunflower Supply Co. in Galena, Kan. The company is licensed by the Oklahoma Tax Commission to do business in Oklahoma.
The arrests and indictments come three years after a Tulsa World investigation revealed the methods and delivery route used by Hall's companies to ship low-tax cigarettes into Tulsa-area smoke shops licensed by the Creek, Osage and Cherokee nations.
The indictment alleges that beginning in January 2005 and continuing through May 7, 2007, Hall and the other defendants conspired to defraud the state of Oklahoma and Indian tribes that share in the proceeds of cigarette taxes.
The World investigation showed how low-tax cigarettes sold along the Oklahoma border by Indian smoke shops were being funneled into the Tulsa area, a high-tax zone. Low-tax cigarettes bear a 6-cent tax stamp and by law can be sold along the Oklahoma border by smoke shops in competition with low-tax states. The Tulsa tax rate is $1.03 per pack.
Others indicted with Hall include Jeremy Wayne Hooker, 33. Hooker operates Pipestone Smoke Shop, a low-tax Cherokee store in Vinita, according to the federal indictment. The World investigation revealed that Pipestone was buying and selling hundreds of thousands of dollars worth of low-tax cigarettes and shipping them into the Tulsa area and elsewhere.
The low-tax cigarettes allowed some smokeshop owners to skim millions of dollars off Oklahoma's new tobacco tax, which took effect in 2005 to raise money to fund health initiatives and curb smoking among Oklahomans.
Hall, a self-made millionaire who owns numerous business ventures, lives in Joplin, Mo. Hooker lives in Salina.
In addition to Sunflower Supply Co., Hall also exercised control over other business entities, including Discount Tobacco Warehouse Inc. of Joplin; National Tobacco Distributors; Rebel Industries Inc.; Halls Collection Inc.; Shawnee Tobacco Smoke Shop in Harrah, and Sunflower Aircraft Inc., the federal indictment states.
The federal charges against Hall and the other defendants include conspiracy to divert cigarettes, money laundering, mail fraud, wire fraud (cigarette orders), wire fraud (money transfer), interstate transportation in aid of racketeering, and violation of the Contraband Cigarette Trafficking Act.
Hall was arrested in Galena and transported to Wichita, Kan.
The federal investigation that resulted in the charges was begun by the Bureau of Alcohol, Tobacco, Firearms and Explosives in April 2006, according to the Kansas District of the U.S. Department of Justice.
At that time, one of the defendants was stopped by the Kansas Highway Patrol in Coffeyville, Kan. The individual was transporting a load of cigarettes worth more than $200,000 without required documents and appropriate tax stamps, the Justice Department alleged.
Acting U.S. Attorney Marietta Parker announced the indictments on Friday. In addition to Hall and Hooker, those charged are:
Thomas Anthony Grantham, 50, Joplin, who manages operations for Hall at Sunflower and Rebel Industries, a trucking company used to transport cigarettes.
Keith Dion Noe, 42, of Joplin, who is the accountant for Sunflower, Discount Tobacco Warehouse, Rebel Industries and Shawnee Tobacco.
Justin Boyes, 32, of Galena, who worked for Hall at Sunflower and now works for Hall at Discount Tobacco Warehouse.
Danny Ray Davis, 62, of Galena, who worked for Hall at Sunflower and now works for him at Rebel.
James William Coble, 35, of Galena, who worked for Hall at Sunflower and now works for him at Rebel.
Justice Michael Berry, 36, of Joplin, who worked for Hall as an accountant.
Three business entities -- Sunflower Supply Company Inc., Discount Tobacco Warehouse Inc. and Rebel Industries Inc. -- also are named as defendants.
The government is also seeking to seize Hall's private jet and other personal property.
Omer Gillham 581-8301
omer.gillham@tulsaworld.com
6 cents
The tax stamp on low-tax cigarettes, which can be sold along the Oklahoma border by smoke shops in competition with low-tax states.
$1.03
The tax rate per pack in Tulsa.
To see more of the Tulsa World, or to subscribe to the newspaper, go to www.tulsaworld.com.
Copyright (c) 2008, Tulsa World, Okla.
Distributed by McClatchy-Tribune Information Services.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
www.tmcnet.com/usubmit/2008/10/18/3714290.htm
(Tulsa World (OK) Via Acquire Media NewsEdge) Oct. 18--View a PDF of the indictment of tobacco wholesaler Gary L. Hall. tulsaworld.com/hall
Tobacco wholesaler Gary Lester Hall has been indicted in federal court on allegations that he organized a $25 million tax scheme to defraud Oklahoma and its Indian tribes out of millions of dollars in cigarette tax revenues, records show.
Hall, 66, and seven other defendants were charged Wednesday in a 43-count federal indictment in U.S. District Court in Kansas.
Hall is the owner of Sunflower Supply Co. in Galena, Kan. The company is licensed by the Oklahoma Tax Commission to do business in Oklahoma.
The arrests and indictments come three years after a Tulsa World investigation revealed the methods and delivery route used by Hall's companies to ship low-tax cigarettes into Tulsa-area smoke shops licensed by the Creek, Osage and Cherokee nations.
The indictment alleges that beginning in January 2005 and continuing through May 7, 2007, Hall and the other defendants conspired to defraud the state of Oklahoma and Indian tribes that share in the proceeds of cigarette taxes.
The World investigation showed how low-tax cigarettes sold along the Oklahoma border by Indian smoke shops were being funneled into the Tulsa area, a high-tax zone. Low-tax cigarettes bear a 6-cent tax stamp and by law can be sold along the Oklahoma border by smoke shops in competition with low-tax states. The Tulsa tax rate is $1.03 per pack.
Others indicted with Hall include Jeremy Wayne Hooker, 33. Hooker operates Pipestone Smoke Shop, a low-tax Cherokee store in Vinita, according to the federal indictment. The World investigation revealed that Pipestone was buying and selling hundreds of thousands of dollars worth of low-tax cigarettes and shipping them into the Tulsa area and elsewhere.
The low-tax cigarettes allowed some smokeshop owners to skim millions of dollars off Oklahoma's new tobacco tax, which took effect in 2005 to raise money to fund health initiatives and curb smoking among Oklahomans.
Hall, a self-made millionaire who owns numerous business ventures, lives in Joplin, Mo. Hooker lives in Salina.
In addition to Sunflower Supply Co., Hall also exercised control over other business entities, including Discount Tobacco Warehouse Inc. of Joplin; National Tobacco Distributors; Rebel Industries Inc.; Halls Collection Inc.; Shawnee Tobacco Smoke Shop in Harrah, and Sunflower Aircraft Inc., the federal indictment states.
The federal charges against Hall and the other defendants include conspiracy to divert cigarettes, money laundering, mail fraud, wire fraud (cigarette orders), wire fraud (money transfer), interstate transportation in aid of racketeering, and violation of the Contraband Cigarette Trafficking Act.
Hall was arrested in Galena and transported to Wichita, Kan.
The federal investigation that resulted in the charges was begun by the Bureau of Alcohol, Tobacco, Firearms and Explosives in April 2006, according to the Kansas District of the U.S. Department of Justice.
At that time, one of the defendants was stopped by the Kansas Highway Patrol in Coffeyville, Kan. The individual was transporting a load of cigarettes worth more than $200,000 without required documents and appropriate tax stamps, the Justice Department alleged.
Acting U.S. Attorney Marietta Parker announced the indictments on Friday. In addition to Hall and Hooker, those charged are:
Thomas Anthony Grantham, 50, Joplin, who manages operations for Hall at Sunflower and Rebel Industries, a trucking company used to transport cigarettes.
Keith Dion Noe, 42, of Joplin, who is the accountant for Sunflower, Discount Tobacco Warehouse, Rebel Industries and Shawnee Tobacco.
Justin Boyes, 32, of Galena, who worked for Hall at Sunflower and now works for Hall at Discount Tobacco Warehouse.
Danny Ray Davis, 62, of Galena, who worked for Hall at Sunflower and now works for him at Rebel.
James William Coble, 35, of Galena, who worked for Hall at Sunflower and now works for him at Rebel.
Justice Michael Berry, 36, of Joplin, who worked for Hall as an accountant.
Three business entities -- Sunflower Supply Company Inc., Discount Tobacco Warehouse Inc. and Rebel Industries Inc. -- also are named as defendants.
The government is also seeking to seize Hall's private jet and other personal property.
Omer Gillham 581-8301
omer.gillham@tulsaworld.com
6 cents
The tax stamp on low-tax cigarettes, which can be sold along the Oklahoma border by smoke shops in competition with low-tax states.
$1.03
The tax rate per pack in Tulsa.
To see more of the Tulsa World, or to subscribe to the newspaper, go to www.tulsaworld.com.
Copyright (c) 2008, Tulsa World, Okla.
Distributed by McClatchy-Tribune Information Services.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
www.tmcnet.com/usubmit/2008/10/18/3714290.htm