John Barrett Fairchild, Cigarette Tax Evasion, WV 2017

MARTINSBURG, WEST VIRGINIA – In a gritty turn of events, John Barrett Fairchild, 42, from East Islip, New York, was sentenced today to three years probation for his role in cigarette smuggling. United States Attorney Bill Powell announced the sentence, which stems from Fairchild’s conspiracy to evade tobacco taxes.

In December 2017, Fairchild pled guilty to one count of “Conspiracy to Evade Tobacco Taxes” and one count of “Contraband Cigarettes Trafficking Act.” He orchestrated the transportation of vast quantities of cigarettes across state lines to avoid paying the cigarette tax, a lucrative endeavor in violation of federal law.

The illegal cigarettes were sourced from Virginia, where taxes on smoking products are notably low. Fairchild then sold these contraband items in states with higher tax rates, including New York. His activities primarily involved possession and transportation within West Virginia.

“Fairchild’s actions not only defrauded the government of much-needed revenue but also created an unfair competitive advantage for those who follow the law,” Powell said.

In addition to his probation sentence, Fairchild was ordered to pay a substantial fine of $5,000. Assistant U.S. Attorney Michael D. Stein led the prosecution on behalf of the government, while the Internal Revenue Service Criminal Investigation, Homeland Security Investigations, the Alcohol and Tobacco Tax and Trade Bureau, and the Frederick County, Virginia Sheriff’s Office conducted the investigation.

Chief U.S. District Judge Gina M. Groh presided over the sentencing hearing. This sentence is a stark reminder of the consequences faced by those who engage in organized crime and tax evasion.”