Violent criminals expand into cigarettes

By Kevin Johnson, USA TODAY
Updated 50m ago |

A recent wave of state tobacco tax increases, designed to pump revenue into cash-strapped local governments, is inspiring an increasingly dangerous cigarette smuggling industry where big profits lure violent criminal gangs and drug traffickers into the booming illegal market, according to law enforcement officials and court records.

Larry Penninger, acting director of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ tobacco diversion unit, says investigations and prosecutions involving tobacco trafficking have been increasing as smugglers flood high-tax states with cigarettes from low-tax states.

From 2007 to last year, 27 states raised their cigarette taxes, according to Michigan’s Mackinac Center for Public Policy, which closely tracks tobacco tax rates across the country. Mackinac describes tobacco smuggling as an “unintended consequence of high cigarette taxes.â€