KANSAS CITY, Mo. – A trio of Canadian men have copped to their involvement in a massive $17 million cigarette smuggling ring that bilked New York state out of over $8 million in taxes.
Mark Bishop, 42, and Piotr Hoffmann, 43, both from Montréal, Quebec, pleaded guilty to aiding and abetting contraband cigarette trafficking. Their brother David Bishop, 46, also of Montréal, admitted to participating in a conspiracy to commit wire fraud and contraband cigarette trafficking.
David Bishop ran DKB Trade Concepts, a Canadian corporation that facilitated the sale of untaxed cigarettes from July 2010 to January 2012. The Bishop brothers and Hoffmann were part of a syndicate that bought over $17 million worth of contraband cigarettes during an ATF undercover operation.
Approximately 620,600 cartons of cigarettes were transported to New York reservations where they were sold at steep discounts due to the lack of state taxes. The scheme resulted in the loss of more than $8 million in tax revenue for New York State.
David Bishop was compensated with commissions or brokerage fees for his role in arranging contraband cigarette orders, while Mark Bishop and Hoffmann each transported loads of contraband cigarettes from Kansas City to New York. Hoffman’s cut was $11,000, which he must forfeit to the government.
The Bishops and Hoffmann face up to five years in federal prison without parole under U.S. federal statutes. Sentencing will be determined by the court following a presentence investigation by the U.S. Probation Office.
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Drug Trafficking|Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: Official Source ↗
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