Tobacco charges dropped
Feds want more time to investigateBy GARRETT NEESE, DMG writer
MARQUETTE - Felony charges against a group of men linked to a contraband tobacco and trafficking network have been dismissed to allow more time for investigation, a federal attorney involved with the case said Tuesday.
"We dismiss them without prejudice, which allows us further time to investigate or speak with the parties, and then get a grand jury indictment," said Susan Gillooly, assistant U.S. attorney with the Eastern District of Michigan.
The men were accused of defrauding Michigan and other states of $9 million in proceeds from excise taxes on 460,000 cartons of cigarettes.
Joseph Fish of Baraga and Charles Vowels of Tampa, Fla., a former employee of Fish, were charged with knowingly shipping, transporting, receiving, possessing, selling, distributing or purchasing contraband cigarettes, a felony punishable by up to five years in prison and/or a $250,000 fine. Garrick Lamb of Baraga, Jay Lewis of Atlantic Mine, Joseph Romano of Toivola, John Varline of Baraga and Kirk Burton of Las Vegas, Nev., another former employee of Fish, were charged with conspiracy to do the same, also a five-year felony.
Gillooly anticipates a grand jury indictment within the next 60 days. The new charges will be shifted from the Western District Court in Marquette to the Eastern District in Detroit. More defendants may also be added, she said.
According to the Federal Speedy Trial Act, in cases where a not guilty plea is entered, a federal trial must begin within 70 days of an indictment.
The original charges were filed after a two-year investigation in which investigators from the Michigan State Police Tobacco Tax Unit worked with the Bureau of Alcohol, Tobacco, Firearms and Explosives. The five Copper Country men were arrested in August.
At that time, search warrants were served at the homes and businesses of Fish and Varline, and their respective businesses - J&L Enterprises and Keweenaw Bay Outfitters & Superior Pizza.
The men were accused of defrauding Michigan and other states of $9 million in proceeds from excise taxes on 460,000 cartons of cigarettes. The men's bank records were also seized in the investigation. According to the original complaint against Varline, more than $1.1 million had been deposited in the Keweenaw Bay Outfitters & Superior Pizza bank account between July 2007 and January. Fish wrote numerous checks from his J&L Enterprises account, according to the complaint against him. The largest mentioned amount was $175,000.
According to Fish's complaint, he sold cigarettes out of his smoke shop in Baraga, as well as to wholesalers in Kentucky. Varline sold cigarettes out of Keweenaw Bay Outfitters, according to his complaint, and began selling cigarettes to other locations in the U.S. in June 2008.
Garrett Neese can be reached at gneese@mininggazette.com.
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Snowman
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09-11-09 10:03 AM
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After a two year investigation they couldn't come up with enough evidence to charge these guys? The fact their goods were confiscated and they were arrested flies in the face of the prosecutors lack of ability to get a conviction. Frustrate law enforcement must have decided to bust them anyway, with our without evidence. Interesting.
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RabbitKiller
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09-10-09 5:15 PM
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So the whole case has gone "up in smoke"?
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