From the U.S. Attorney’s Office in Baltimore:
Baltimore, Maryland – A federal grand jury indicted Republic National Distribution Company, LLC, and its employees, Eugene Gerzsenyi, age 52, of Glen Burnie, Maryland; Jason Lockerman, age 38, of Bel Air, Maryland; and Lisa Robbins, age 55, of Woodbine, Maryland, today on charges arising from a scheme to defraud the state and city of New York, and registered New York liquor wholesalers. Specifically, the indictment alleges that the defendants transferred and moved liquor from Maryland, where the state excise tax rate for liquor was approximately $1.50 per gallon, to New York, where the state excise tax for liquor was approximately $7.44 per gallon, for retail sale.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Administrator for Field Operations Tom Crone, U.S. Treasury Department, Alcohol and Tobacco Tax and Trade Bureau (TTB); and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service – Criminal Investigation, Washington, D.C. Field Office.
According to the indictment Republic National Distribution Company, LLC, (RNDC), which has offices in Jessup, Maryland, is a wholesale distributor of liquor in Maryland and elsewhere in the United States. Eugene Gerzsenyi was the Assistant Director of Operations for RNDC, Jason Lockerman was a salesman for RNDC and Lisa Robbins was an accounting manager. According to the indictment, any wholesaler transferring or distributing liquor for retail sale in Maryland, or in New York, was required to register with the state, and to provide monthly reports of the quantities of liquor transferred or distributed for retail sale in the state. RNDC was registered in Maryland and sold and delivered liquor to Cecil County retailers, including liquor stores, bars and restaurants.
The 23 count indictment alleges that from at least June 2009 through June 2012, a number of New York liquor retailers communicated with several retail liquor stores in Cecil County to order cases of wine and liquor. People working at the Cecil County retailers then passed the orders to RNDC though salesmen, including Lockerman. The indictment alleges that Lockerman and the other RNDC salesmen knew that the liquor was intended for retail sale in New York, and they transmitted those orders to RNDC to be filled. According to the indictment, RNDC delivered the ordered liquor to the Cecil County retailers, where it was held for the New York retailers. The New York retailers and their agents then picked up and transported the liquor to New York, where it was sold to customers without the New York excise taxes being paid.
The indictment alleges that RNDC, Robbins, Gerzsenyi, and Lockerman facilitated the payment to RNDC for liquor that was moved from RNDC, through the Cecil County retailers to the New York retailers and their agents. Specifically, RNDC submitted invoices to the Cecil County retailers that included the amounts owed to RNDC for the liquor that had been delivered to the New York retailers and their agents. The New York retailers paid the Cecil County retailers in cash, which the Cecil County retailers deposited into their business accounts. The Cecil County retailers then paid RNDC by check.
The indictment alleges that RNDC, the New York retailers, and the Maryland retailers, did not register as liquor wholesalers or distributors in New York; did not provide monthly reports of the quantities of liquor shipped into New York for retail sale; and did not pay New York excise taxes. In addition, RNDC allegedly filed false reports to the Maryland State Comptroller’s Office, indicating that all liquor sold to the Cecil County retailers was intended for resale in Maryland.
The indictment seeks forfeiture of all proceeds traceable to the scheme, including a money judgment of at least $9 million.
If convicted, the company and the individual defendants face a $250,000 fine, and the individual defendants also face a maximum sentence of 20 years in prison, for wire fraud conspiracy and each of four counts of wire fraud. If convicted of the money laundering counts, the indictment seeks forfeiture from RNDC of the funds involved in those offenses. No initial appearance has been scheduled for the defendants.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, TTB, and IRS-Criminal Investigation for their work in the investigation and thanked the New York State Department of Taxation and Finance Criminal Investigations Division for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Tamera L. Fine and Richard C. Kay, who are prosecuting the case.
What do you expect from Cecitucky.
I’m sure campaign for liberty will be by to tell us all how OBama is destroying our god given rights to capitalism. We need less taxes and regulations and this sort of criminal activity will now be legal.
Smuggling is wrong but…if the State of NY rips people off to the tune of $7.00/gallon for taxes it’s no surprise somebody would do this. Reasonable tax rates are expected but that rate is nothing short of institutiinalized/sanctioned theft. That’s outrageous…people and businesses flee NY for a reason.
Spoken like a true alcoholic who lacks the ability to not buy liquor.
Yeah, people and businesses are flying out of the horrible state of New York like crazy! It only has the 3rd highest GDP in the country, and if you don’t count the USA or the EU, it has the 12th highest GDP in the world. Things must be horrible there. Bring on the lawlessness!
That’s because NY is the banking/finance center of the world – where the other legal thefts occur…you know where hedge fund admins get 1M bonuses for showing up to work. Where the stick market manipulations occur, home to AIG, Morgan Stanley, et al. For the avg. NYer, they don’t fare so well but you sure can sku an avg with the outrageous compensation at the top. NY has been losing population for years and is now begging people to come back, to start businesses. I’m sure you’ve seen the ad campaign
The NY state gas tax is the 3rd highest in the country and they have about the crappiest roads anywhere. Literally as you’re driving you can see the NY/CT state line just by the road conditions so where’s the money going? It costs $15 bucks to cross the GW bridge. NY…land of corruption, excess and outrageous tax rates with no corresponding increase in services.
Highest gas tax and no other way to get around the city but drive your car. You would think they would have some sort of public transportation system…..
You do realize that a great part of New York STATE is rural, don’t you? Your argument may be valid for the burroughs, but these are STATE taxes.
Would the rural areas be where moneybush refers to the banking/finance center of the world?
No wonder you are amazed. 🙂
What does a sky high liquor tax have to do with your issue with having more buses? My point is at some tax threshold gov’t encourages a black market and your point is just on top of your head.
Amazed again, and scratching my pointy head! My reply was to BOTH of you, and it referenced the fact not all of New York can be accessed by the subway, and many of the residents of New York who pay those taxes have never even been to New York City. I know several. I am not arguing that the entire state should have a public transportation system. That is ludicrous, and quite a leap from what I wrote. God help me, I was actually almost agreeing with Money Tree, although that may not have come across clearly. People and businesses are leaving parts of New York. The taxes are outrageous. New York CITY may have the third highest GDP, which carries over to the state. People in Northern and Western New York, many of whom live farther from NYC than those of us in Harford County do, pay these taxes too. They do not benefit from a public transportation system in the Adirondacks or by the Finger Lakes, yet they still pay the outrageous fuel taxes. It does encourage people to find another way to make purchases.
Taxation is theft
Liquor made the Kennedy’s rich and made him President. Praise God for all the crooks in our government who made it without being caught. What a bunch of hypocrites you all are.