Reno man sentenced in cigarette tax fraud scheme

A federal judge in Seattle has ordered a 60-year-old Reno, Nev., man to serve nine months in prison and pay $20 million in restitution to the state Internal Revenue Service for failing to pay taxes on cigarettes.
U.S. District Judge James Robart said Robert Stuber, who owned Cowlitz Candy and Tobacco Co., was overcome by greed.
Stuber pleaded guilty to conspiracy and money-laundering charges last February. He admitted that he sold more than a million cartons of cigarettes to the Blue Stilly Smoke Shop near Arlington without paying taxes on them.
In March 2009, three Stillaguamish Tribal members, who owned and operated Blue Stilly, were sentenced to prison for selling contraband cigarettes and avoiding $25 million in taxes. Between January 2005 and May 2007, Cowlitz Candy & Tobacco Co., was the primary supplier of cigarettes to the shop.

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