KANSAS CITY, Mo. – A brazen scheme to skirt excise taxes landed a Ukrainian national in federal court today. Yevhen Sychikov, 32, admitted to hauling thousands of cartons of cigarettes from the comparatively low-tax state of Missouri to Chicago, Illinois, a move designed to dodge a staggering $159,852 in state and local taxes.
Sychikov, a resident of Chicago, pleaded guilty before U.S. District Judge Dean Whipple to the charge of interstate transportation of contraband cigarettes. The operation wasn’t a one-off; the feds say Sychikov made multiple trips, systematically exploiting the price difference between Missouri and the Windy City.
According to the plea agreement, Sychikov hit up convenience stores across northwest Missouri for his illicit stock. Investigators pinpointed three locations: Trex Mart in Lathrop, Discount Smoke and Liquor Store in Riverside, and Tipsy Liquor in Smithville. On May 10, 2014, he scored 1,200 cartons in a single run. Just a month later, on June 14th and 15th, he grabbed another 1,395 cartons, all destined for Chicago.
The numbers tell the story. Missouri taxes cigarettes at a mere 17 cents a pack. Chicago, however, is a different beast. Illinois levies $1.98 per pack, Cook County adds another $3, and the city itself tacks on $1.18. That brings the total excise tax in Chicago to a hefty $6.16 per pack. Sychikov’s scheme wasn’t about a few bucks; it was a calculated effort to pocket a significant profit by avoiding those taxes.
Federal prosecutors are seeking up to five years in federal prison for Sychikov, a sentence without parole. While the maximum is set by Congress, the judge will ultimately determine the punishment based on sentencing guidelines and other factors. A presentence investigation will be conducted by the United States Probation Office before a sentencing hearing is scheduled.
Assistant U.S. Attorney Paul S. Becker is prosecuting the case, with the investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives NITRO Task Force. This isn’t just about cigarettes; it’s about a deliberate attempt to defraud state and local governments, and the feds are sending a clear message: tax evasion will be prosecuted.
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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