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NYC sues reservation smoke shops over bootlegging

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  • NYC sues reservation smoke shops over bootlegging

    by Sara Kugler
    New York, New York (AP)

    Mayor Michael Bloomberg filed a federal lawsuit against eight smoke shops that sell tax-free cigarettes on a Long Island Indian reservation, saying the city is being cheated out of millions in tax revenues.

    The lawsuit filed in federal court accuses the small cluster of shops on the Poospatuck Reservation of breaking state and federal law by selling massive quantities of cigarettes to bootleggers, who then smuggle the cartons off the reservation and resell them throughout the metropolitan area.

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