Eight Defendants, Cigarette Tax Evasion, Alaska 2013
ANCHORAGE, ALASKA - Eight defendants have been indicted on charges of mail fraud, money laundering conspiracy, conspiracy to make false statements regarding the distribution of cigarettes, and aggravated structuring currency transactions, according to a federal indictment unsealed last week.
The indictment names Michael Butler, 42, Sun Sims, 50, Kimberly Sims, 29, In Sook Baik, 28, Kyong Hee Kim, 55, Jae Ho Lee, 58, Jae Gak Lee, 60, and Jerry Lee, 58, who were charged in a 20-count indictment.
The indictment alleges that the defendants collectively ordered and purchased approximately 12,350,000 cigarettes, intended for resale within the Municipality of Anchorage, between 2009 and October 10, 2012. By falsely representing that the ultimate destination for the sale of these cigarettes was outside of the Municipality of Anchorage, the defendants caused the Municipality to lose cigarette excise tax revenue in excess of $1,375,000.
The indictment also alleges that In Sook Baik evaded financial reporting requirements by structuring deposits made to Northrim Bank and Wells Fargo Bank, N.A., totaling over $225,000.
The United States District Court for the District of Alaska has summoned all of the defendants to appear for their respective arraignments on August 28 and 29, 2013.
Assistant U.S. Attorney Stephan A. Collins and Special Assistant U.S. Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 20 years in prison for mail fraud, a fine of $250,000, or both.
The indictment also alleges forfeiture of funds totaling over $1 million and seeks a money judgment in the amount of $3.6 million.
Defendant(s): Michael Butler, Sun Sims, Kimberly Sims, In Sook Baik, Kyong Hee Kim, Jae Ho Lee, Jae Gak Lee, Jerry Lee
Criminal Charges: Mail fraud, money laundering conspiracy, conspiracy to make false statements regarding the distribution of cigarettes, aggravated structuring currency transactions
Location: Anchorage, Alaska
Date: October 10, 2012, and continuing up until
Sentence/Outcome: To be determined
Dollar Amounts: $3.6 million in fees and costs, $1,375,000 in lost cigarette excise tax revenue, over $225,000 in structured deposits
Key Facts
- State: Alaska
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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