Cigarette smugglers convicted
Jackson Bell
Five Glendale men were sentenced Monday, three to federal prison, for
smuggling cigarettes bought in Virginia into California, where
cigarette taxes are higher.
Vicken Djeredjian, 31, and Mnatsakan Grigorian, 39, -- the
ringleaders -- were sentenced in a Virginia courthouse to two years
in jail and three years probation, Executive Assistant. U.S. Atty.
Sharon Burnham said.
The 55-count indictment was for transporting more than 60,000
cigarettes per shipment, which is considered contraband, Burnham
said, and for money laundering.
Of nine Los Angeles County men indicted, three others were
Glendale residents: Manvel Iskandaryan, 47; Albert Asatryan, 47; and
Azat Stephanyan, 23, Burnham said. The three drove loads of
cigarettes cross-country and helped in the illegal transactions.
Their sentencing ranged from six months in prison, to one-year
probation to a $150 fine.
During a four-year federal investigation, the men purchased more
than 108 million cigarettes, with a retail value of about $18.5
million, for nearly $9 million, Burnham said. They avoided paying
more than $4.7 million in California cigarette taxes by smuggling
them in from Virginia, she said.
One case, or 60 cartons, cost $15 in taxes in Virginia; California
levies $522 per case, Burnham said.
“One cannot buy large quantities of cigarettes in low-tax states
and take them to high-tax states without following state laws,” she
said. “So when they were buying a large volume, it triggered a red
flag for the store employee.”
That cigarette vendor also became suspicious because the smugglers
paid in cash, Burnham said.
The employee then contacted the federal Bureau of Alcohol,
Tobacco, Firearms and Explosives, and an undercover investigation was
launched, Burnham said.
The men would purchase the cigarettes and truck them into Glendale
and surrounding areas, where they sold the cigarettes wholesale or
retail, she said.
They would put their illegal earnings into forfeited bank
accounts, or spend them on cars, real estate and to buy more
cigarettes, Burnham said.
Djeredjian, Grigorian and another of the ring’s organizers -- Akop
Chichyan, 33, of Granada Hills -- worked out of a warehouse on San
Fernando Road until fall of 2001, when they became suspicious that
undercover agents were staking them out from a van, Burnham said.
The three moved their operation to a North Hollywood location.
Their largest order was 800 cases of cigarettes paid for with
$800,000 in cash, Burnham said.
The nine were indicted in March 2003, and pleaded guilty March 7,
officials said.
“This case is important not just because the state of California
lost tax revenues,” Burnham said. “But because there is a huge
incentive to generate a lot of money quickly and easily that can be
used in any other number of illegal activities.”
The state loses an estimated $300 million annually in revenues due
to cigarette tax evasion, said Anita Gore, spokeswoman for the
California State Board of Equalization.
“These are taxes that affect Californians,” Gore said. “The
cigarette taxes are used for many health and children’s programs, and
those things suffer when the appropriate taxes are not paid.”
* JACKSON BELL covers public safety and courts. He may be reached
at (818) 637-3232 or by e-mail at jackson.belllatimes.com.