Common use of Factual Basis for Guilty Plea Clause in Contracts

Factual Basis for Guilty Plea. The parties agree that the facts constituting the offense to which he is pleading guilty are as follows: During all times relevant, Xxxxxxx X. Xxxxx owned and operated Wolf's Run, a business located in Irving, New York. Wolf's Run was a business that operated a gas station, convenience store and trucking transport business. Neither Xxxxxxx X. Xxxxx nor Xxxx'x Run was a licensed tobacco wholesaler in New York authorized to bring untaxed cigarettes into New York State. New York State imposes excise taxes on all cigarettes sold in the state, unless expressly exempted by law or by private agreement between New York State and an Indian nation or tribe (either approved by the legislature or part of a stipulation and order approved by a federal court). Under New York State law, cigarettes can only be transported into the state by a limited number of state-licensed stamping agents (i.e. wholesalers). The New York Department of Taxation and Finance pre-collects the cigarette excise tax from these state-licensed stamping agents on cigarettes that are sold to retailers, but prior to their delivery to the retailers. This taxing scheme was upheld as specifically applicable against Indian nations on May 9, 2011, by the United States Court of Appeals for the Second Circuit in Oneida Nation of New York x. Xxxxx, 645 F.3d 154 (2d Cir. 2011). Federal and New York State law require that tax stamps be affixed to cigarette packages—prior to their delivery to retailers—reflecting that the required state taxes have been paid. During the relevant time period, New York State imposed a cigarette excise tax of $4.35 per pack or $43.50 per carton. In New York State, only licensed wholesalers may purchase unstamped cigarettes. This is done either directly through the cigarette manufacturer or through other wholesalers. Under New York State law, it is the obligation of state-licensed stamping agents to prepay the excise tax and affix stamps on all cigarette packs. Under New York state and federal law, tobacco wholesalers must report the sales of cigarettes to the state. Codefendant Xxxxxxxxxx Xxxxxxxx would make regular purchases in Kansas City, Missouri, of contraband cigarettes from undercover agents (UCAs) of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in exchange for U.S. Currency. Xxxxxxxx, X. Xxxxxxx Xxxxx, Xxxxx Xxxxxx and Xxxxxx X. Xxxxxx would coordinate the cigarette orders and wire transfers from the vendors in New York State – including Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and HCID in Nebraska. Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx transported and caused to be transported into New York State and Xxxxxxx X. Xxxxx possessed unstamped cigarettes in New York State without prior approval by the New York Department of Taxation and Finance and without first paying the required $4.35 per pack excise tax. Xxxxx would then sell those unstamped, untaxed cigarettes at Wolf’s Run store. Sundown would then sell those unstamped, untaxed cigarettes at Jan’s Smoke shop. AJ’s and Xxxxx would also sell those unstamped, untaxed cigarettes to other smoke shops on the reservations in New York State. Stoldt would then sell those unstamped, untaxed cigarettes at his Totem Pole Smoke Shop. Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx would wire transfer money across state lines to prepay for orders of unstamped cigarettes. At the time of those wire transfers, Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, XX’s and Xxxxx Xxxxxx knew they were purchasing unstamped cigarettes with the intent that the New York State excise tax would not be pre-collected, thus allowing the sale of the cigarettes at a considerable discount and depriving New York State of its tax revenue. Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx would place the order for unstamped cigarettes through Xxxxxx Xxxxxx and Xxxxxx X. Xxxxxx. Xxxxxx, using the Seneca Cayuga Tobacco Company (SCTC), would then place orders for those unstamped cigarettes from Tadaiyon and BNC. Xxxxxxxx would forward the order to Xxxxx Xxxxxx and T. Xxxxxxx Xxxxx, and X. Xxxxxxx Xxxxx would e-mail the order for the unstamped cigarettes to Xxxxxxxx and CTW in Independence, Missouri. After the orders had been placed, through the end of September 22, 2011, Xxxxxxxx, Xxxx Xxxxxx and Xxxxx Xxxxxxxx would pick-up the unstamped cigarettes in the Kansas City, Missouri area and transport them to the SCTC in Grove, Oklahoma. From SCTC, the unstamped cigarettes would be transported to Wolf’s Run, Xxx’s Smoke Shop, AJ’s and the Totem Pole Smoke Shop in New York State by a common carrier. Xxxx’x Run made purchases of contraband Marlboro and Newport cigarettes on September 15, 2011 and December 15, 2011. Xxxx’x Run received approximately $459,876 in gross profit on these transactions. On October 13, 2011, Xxxxxxx Xxxxx met Xxxxx Xxxxxxxx in the parking lot of the Holiday Inn Express located in North Kansas City, Missouri. In the hotel parking lot, Xxxxxxxx transferred possession to Xxxxxxx Xxxxx and Xxxxxxx Xxxxx then possessed those 2,700 cartons (45 cases) of untaxed Marlboro cigarettes and 2,880 cartons (48 cases) of untaxed Newport cigarettes at Wolf’s Run located in Irving, New York.

Factual Basis for Guilty Plea. The parties agree that the facts constituting the offense to which he is pleading guilty are as follows: During all times relevantThe facts and overt acts included in the indictment are incorporated into this plea agreement and paragraph 3 by reference. The Seneca-Cayuga Tobacco Company (SCTC), Xxxxxxx X. Xxxxx owned and located in Grove, Oklahoma, is a corporation operated Wolf's Runby the Seneca Cayuga Tribe of Oklahoma, a business located in Irvingfederally recognized Indian tribe. During the relevant time period, New York. Wolf's Run Xxxxxx X. Xxxxxx was a business that operated a gas station, convenience store and trucking transport business. Neither Xxxxxxx X. Xxxxx nor Xxxx'x Run was a licensed tobacco wholesaler in New York authorized to bring untaxed cigarettes into New York Statethe president of SCTC. New York State imposes excise taxes on all cigarettes sold in the state, unless expressly exempted by law or by private agreement between New York State and an Indian nation or tribe (either approved by the legislature or part of a stipulation and order approved by a federal court). Under New York State law, cigarettes can only be transported into the state by a limited number of state-licensed stamping agents (i.e. wholesalers). The New York Department of Taxation and Finance pre-collects the cigarette excise tax from these state-licensed stamping agents on cigarettes that are sold to retailers, but prior to their delivery to the retailers. This taxing scheme was upheld as specifically applicable against Indian nations on May 9, 2011, by the United States Court of Appeals for the Second Circuit in Oneida Nation of New York x. Xxxxx, 645 F.3d 154 (2d Cir. 2011). Federal and New York State law require that tax stamps be affixed to cigarette packages—prior to their delivery to retailers—reflecting that the required state taxes have been paid. During the relevant time period, New York State imposed a cigarette excise tax of $4.35 per pack or $43.50 per carton. In New York State, only licensed wholesalers may purchase unstamped cigarettes. This is done either directly through the cigarette manufacturer or through other wholesalers. Under New York State law, it is the obligation of state-licensed stamping agents to prepay the excise tax and affix stamps on all cigarette packs. Under New York state and federal law, tobacco wholesalers must report the sales of cigarettes to the state. Codefendant Xxxxxxxxxx Xxxxxxxx would make regular purchases in Kansas CityDuring the relevant time period, Missouri, of contraband cigarettes from undercover agents Unindicted Co-conspirator 1 (UCAsUCC1) of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in exchange for U.S. Currency. Xxxxxxxx, X. Xxxxxxx Xxxxx, Xxxxx Xxxxxx and Xxxxxx X. Xxxxxx would coordinate the cigarette orders and wire transfers from the vendors in New York State – including Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and HCID in Nebraska. Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx transported Xxxxxxxx owned and caused to be transported into New York State and Xxxxxxx X. Xxxxx possessed unstamped cigarettes in New York State without prior approval by the New York Department of Taxation and Finance and without first paying the required $4.35 per pack excise tax. Xxxxx would then sell those unstamped, untaxed cigarettes at Wolf’s Run store. Sundown would then sell those unstamped, untaxed cigarettes at Jan’s Smoke shop. AJ’s and Xxxxx would also sell those unstamped, untaxed cigarettes to other smoke shops on the reservations in New York State. Stoldt would then sell those unstamped, untaxed cigarettes at his Totem Pole Smoke Shop. Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx would wire transfer money across state lines to prepay for orders of unstamped cigarettes. At the time of those wire transfers, Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, XX’s and Xxxxx Xxxxxx knew they were purchasing unstamped cigarettes with the intent that the New York State excise tax would not be pre-collected, thus allowing the sale of the cigarettes at a considerable discount and depriving New York State of its tax revenue. Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx would place the order for unstamped cigarettes through Xxxxxx Xxxxxx and Xxxxxx X. Xxxxxx. Xxxxxx, using the Seneca Cayuga operated Cheap Tobacco Company Wholesale (SCTCCTW), would then place orders for those unstamped cigarettes from Tadaiyon and BNC. Xxxxxxxx would forward the order to Xxxxx Xxxxxx and T. Xxxxxxx Xxxxx, and X. Xxxxxxx Xxxxx would e-mail the order for the unstamped cigarettes to Xxxxxxxx and CTW a cigarette wholesale business located in Independence, Missouri. After UCC1 operated the orders had been placed, through business with the end assistance of September 22Xxxxxxxx until UCC1’s death on October 27, 2011, Xxxxxxxxat which time Xxxxxxxx took over operations. During the relevant time period, Xxxx Xxxxxx Xxxxxxxxxx “Xxxx” Xxxxxxxx owned and operated Brand Name Connoisseurs (BNC), located in Florida. Neither Tadaiyon nor BNC is a licensed tobacco wholesaler or state stamping agent. During the relevant time period, Xxxxxxx X. Xxxxx Xxxxxxxx would pick-up the unstamped cigarettes in the Kansas City, Missouri area owned and transport them to the SCTC in Grove, Oklahoma. From SCTC, the unstamped cigarettes would be transported to operated Wolf’s Run, Xxx’s Smoke Shop, AJ’s and the Totem Pole Smoke Shop in New York State by a common carrier. Xxxx’x Run made purchases of contraband Marlboro and Newport cigarettes on September 15, 2011 and December 15, 2011. Xxxx’x Run received approximately $459,876 in gross profit on these transactions. On October 13, 2011, Xxxxxxx Xxxxx met Xxxxx Xxxxxxxx in the parking lot of the Holiday Inn Express located in North Kansas City, Missouri. In the hotel parking lot, Xxxxxxxx transferred possession to Xxxxxxx Xxxxx and Xxxxxxx Xxxxx then possessed those 2,700 cartons (45 cases) of untaxed Marlboro cigarettes and 2,880 cartons (48 cases) of untaxed Newport cigarettes at Wolf’s Run located in Irving, New York, a tobacco retail and wholesale operation. Neither Xxxxxxx X. Xxxxx nor Xxxx’x Run was a licensed New York tobacco wholesaler authorized to bring cigarettes into New York State. Ho-Chunk, Inc. (HCI), located in Winnebago, Nebraska, is a corporation operated by the Winnebago Tribe of Nebraska, a federally recognized Indian tribe. HCI is the parent company of HCI Distribution (HCID), also located in Winnebago, Nebraska, which claims to be one of the largest tribal cigarette and tobacco distributors in the United States. Xxxxx Xxxxxxxx was the officer in charge of operating HCID. During the relevant time period, Xxxxx Xxxxxxxxx was the HCID warehouse manager. Further, HCI is the parent company of HCI Logistics (HCIL), located in Omaha, Nebraska, which is a commercial transportation company. HCID often used HCIL to transport product from the HCID warehouse in Winnebago, Nebraska. Neither HCI nor HCID are licensed tobacco wholesalers or state stamping agents in Nebraska or New York State. During the relevant time period, Xxxxxx X. Xxxxxx, participated in a conspiracy with Xxxxxxxx, Xxxxxxxx, and others, to transport premium-brand contraband cigarettes onto Indian reservations located in New York State, without New York State’s prior approval, in order to avoid New York State cigarette taxes and reporting requirements. Further, Xxxxxx X. Xxxxxx participated in a conspiracy with Xxxxxxxx, Xxxxx and other individuals located on New York Indian reservations in order to commit wire fraud relating to the sale and transportation of contraband cigarettes. As a result of these conspiracies, New York State suffered significant excise tax loss. The basic manner and means of the conspiracy, as related to Xxxxxx, is summarized as follows: During the conspiracy timeframe, UCC1 and Xxxxxxxx, through CTW, trafficked in contraband premium-brand cigarettes. They would purchase the unstamped premium-brand cigarettes from an undercover ATF agent located in Kansas City, Missouri. Sometimes they would then transport the cigarettes back to the CTW warehouse while other times they would arrange for their customer to directly pick up from the ATF undercover warehouse. Tadaiyon was one of CTW’s customers that would receive unstamped, contraband cigarettes. Xxxxxx, despite SCTC manufacturing their own brands of native cigarettes, was interested in selling unstamped premium-brand cigarettes to smoke shops on other Indian nations, specifically in New York State. Xxxxxx would order premium-brand contraband cigarettes from Tadaiyon, who would then purchase those cigarettes from CTW. Xxxxxx would sell those premium-brand cigarettes to smoke shops – such as Totem Pole, A.J.’s, and Jan’s – located on New York State Indian reservations. The benefit to those smoke shops was that they did not pay New York State cigarette taxes; thus, they could undercut the prices charged by off-reservation cigarette retailers. In order to facilitate this scheme and transport the contraband cigarettes to New York State, Xxxxxx and Tadaiyon worked with HCID, HCIL, Xxxxxxxx, and Frenchman. Xxxxxx and Xxxxxxxx needed to use HCID because their previous proxy, located in Virginia, was no longer available, the result of the legitimate New York stamping agent refusing to continue the business arrangement after the Oneida decision. To pay for the cigarettes (which were charged on delivery), the Indian smoke shops would wire money across state lines, often to SCTC. SCTC would then wire money across state lines to Tadaiyon and BNC. BNC would then wire money across state lines to CTW. UCC1 and/or Xxxxxxxx would pay the undercover ATF agents, often in cash. Xxxxxx X. Xxxxxx admits that a conspiracy existed from on or about July 2010 through on or about January 26, 2012; and that he entered into an agreement or reached an understanding to commit a crime, namely wire fraud and contraband cigarette trafficking, with one or more people. The parties stipulate that $80,000 appropriately represents the amount of remaining profit SCTC received as a result of Xxxxxx’x role in the conspiracy. Moreover, other co-conspirators committed overt acts in the Western District of Missouri and elsewhere in order to fulfill and deliver these contraband cigarette orders to retailers in New York State. This conspiracy existed in the Western District of Missouri and elsewhere, and venue is appropriate in the Western District of Missouri.

Factual Basis for Guilty Plea. The parties agree that the facts constituting the offense to which he is pleading guilty are as follows: The facts and overt acts included in the indictment are incorporated into this plea agreement and paragraph 3 by reference. During all times relevantrelevant to this conspiracy, Xxxxxxx X. Xxxxx Xxxxxxxxxx “Xxxx” Xxxxxxxx (hereinafter Tadaiyon) owned and operated Wolf's RunBrand Name Connoisseurs, Corp. (hereinafter BNC), a business located in Irving, Florida. Neither Tadaiyon nor BNC was a licensed New York tobacco wholesaler authorized to bring cigarettes into the State of New York. Wolf's Run was a business that operated a gas station, convenience store Xxxxx Xxxxxxxxxxx and trucking transport business. Neither Xxxxxx Xxxxxxx X. Xxxxx nor Xxxx'x Run was a licensed tobacco wholesaler in New York authorized to bring untaxed cigarettes into New York Stateworked as drivers for Tadaiyon. New York State imposes excise taxes on all cigarettes sold in the state, unless expressly exempted by law or by private agreement between New York State and an Indian nation or tribe (either approved by the legislature or part of a stipulation and order approved by a federal court). Under New York State law, cigarettes can only be transported into the state by a limited number of state-licensed stamping agents (i.e. wholesalers). The New York Department of Taxation and Finance pre-collects the cigarette excise tax from these state-licensed stamping agents on cigarettes that are sold to retailers, but prior to their delivery to the retailers. This taxing scheme was upheld as specifically applicable against Indian nations on May 9, 2011, by the United States Court of Appeals for the Second Circuit in Oneida Nation of New York x. Xxxxx, 645 F.3d 154 (2d Cir. 2011). Federal and New York State law require that tax stamps be affixed to cigarette packages—prior to their delivery to retailers—reflecting that the required state taxes have been paid. During the relevant time period, New York State imposed a cigarette excise tax of $4.35 per pack or $43.50 per carton. In New York State, only licensed wholesalers may purchase unstamped cigarettes. This is done either directly through the cigarette manufacturer or through other wholesalers. Under New York State law, it is the obligation of state-licensed stamping agents to prepay the excise tax and affix stamps on all cigarette packs. Under New York state and federal law, tobacco wholesalers must report the sales of cigarettes to the state. Codefendant Xxxxxxxxxx Xxxxx Xxxxxxxx and Xxxxxxxx would make regular purchases in Kansas City, Missouri, of contraband cigarettes from undercover agents (UCAs) of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in exchange for U.S. Currencycurrency. Xxxxxxxx, X. Xxxxxxx Xxxxx, Xxxxx and Xxxxx Xxxxxx would coordinate the orders between Xxxxx Xxxxxxxx and Xxxxxxxx. Tadaiyon and Xxxxxx X. Xxxxxx would coordinate the cigarette orders and wire transfers from the vendors in New York State – including Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and HCID in Nebraska. Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx transported and caused to be transported into New York State and Xxxxxxx X. Xxxxx possessed unstamped cigarettes in New York State without prior approval by the New York Department of Taxation and Finance and without first paying the required $4.35 per pack excise tax. Xxxxx would then sell those unstamped, untaxed cigarettes at Wolf’s Run store. Sundown would then sell those unstamped, untaxed cigarettes at Jan’s Smoke shop. AJ’s and Xxxxx would also sell those unstamped, untaxed cigarettes to other smoke shops on the reservations in New York State. Stoldt Xxxxxx would then sell those unstamped, untaxed cigarettes at his Totem Pole Smoke Shop. Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx would wire transfer money across state lines to prepay for orders of unstamped cigarettes. At the time of those wire transfers, Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, XXAJ’s and Xxxxx Xxxxxx knew they were purchasing unstamped cigarettes with the intent that the New York State excise tax would not be pre-collected, thus allowing the sale of the cigarettes at a considerable discount and depriving New York State of its tax revenue. Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx would place the order for unstamped cigarettes through Xxxxxx Xxxxxx and Xxxxxx X. Xxxxxx. Xxxxxx, using the Seneca Cayuga Tobacco Company (SCTC), would then place orders for those unstamped cigarettes from Tadaiyon and BNC. Xxxxxxxx would forward the order to Xxxxx Xxxxxx and T. Xxxxxxx XxxxxXxxxxx, and X. Xxxxxxx Xxxxx Xxxxxx would e-mail the order for the unstamped cigarettes to Xxxxxxxx and CTW in Independence, Missouri. After the orders had been placed, through the end of September 22, 2011, Xxxxxxxx, Xxxx Xxxxxx and Xxxxx Xxxxxxxx would pick-up the unstamped cigarettes in the Kansas City, Missouri area and transport them to the SCTC in Grove, Oklahoma. From SCTC, the unstamped cigarettes would be transported to Wolf’s Run, Xxx’s Smoke Shop, AJ’s and the Totem Pole Smoke Shop in New York State by Wolf’s Run or a common carrier. Xxxx’x Run made purchases of contraband Marlboro and Newport cigarettes on After September 15, 2011 and December 15, 2011. Xxxx’x Run received approximately $459,876 in gross profit on these transactions. On October 1322, 2011, Xxxxxxxx, Xxxx Xxxxxx, Xxxxx Xxxxxxxx, Xxxxx Xxxxxxxxxxx and Xxxxxx Xxxxxxx Xxxxx met Xxxxx Xxxxxxxx would pick-up the orders of unstamped cigarettes from the undercover ATF warehouse in the parking lot of the Holiday Inn Express located in North Kansas City, Missouri, or at the CTW warehouse in Independence, Missouri, and then transport them directly to the HCID in Nebraska. In Xxxxx Xxxxxxxxx, at HCID, would coordinate with HCIL to have the hotel parking lotunstamped cigarettes transported to Jan’s Smoke Shop, AJ’s and the Totem Pole Smoke Shop in New York State. Xxxxxxxxxx Xxxxxxxx transferred possession admits that a conspiracy existed from on or about July 2010 through on or about January 26, 2012; and that after that conspiracy was in effect, on or around July 1, 2011, he entered into an agreement or reached an understanding to Xxxxxxx Xxxxx commit a crime, namely wire fraud and Xxxxxxx Xxxxx then possessed those 2,700 cartons (45 cases) of untaxed Marlboro cigarettes and 2,880 cartons (48 cases) of untaxed Newport cigarettes at Wolf’s Run located in Irvingcontraband cigarette trafficking, New Yorkwith one or more people.

Factual Basis for Guilty Plea. The parties agree that the facts constituting the offense to which he is pleading guilty are as follows: During all times relevantThe facts and overt acts included in the indictment are incorporated into this plea agreement and paragraph 3 by reference. Ho-Chunk, Xxxxxxx X. Xxxxx owned and Inc. (HCI), located in Winnebago, Nebraska, is a corporation operated Wolf's Runby the Winnebago Tribe of Nebraska, a business federally recognized Indian tribe. HCI is the parent company of HCI Distribution (HCID), also located in IrvingWinnebago, New YorkNebraska, which claims to be one of the largest tribal cigarette and tobacco distributors in the United States. Wolf's Run Xxxxx Xxxxxxxx is the officer in charge of operating HCID. During the relevant time period, Xxxxx Xxxxxxxxx was the HCID warehouse manager. Further, HCI is the parent company of HCI Logistics (HCIL), located in Omaha, Nebraska, which is a business that operated a gas stationcommercial transportation company. HCID often uses HCIL to transport product from the HCID warehouse in Winnebago, convenience store and trucking transport businessNebraska. Neither Xxxxxxx X. Xxxxx HCI nor Xxxx'x Run was a HCID are licensed tobacco wholesaler wholesalers or state stamping agents in New York authorized to bring untaxed cigarettes into Nebraska or New York State. New York State imposes excise taxes on all cigarettes sold in the state, unless expressly exempted by law or by private agreement between New York State and an Indian nation or tribe (either approved by the legislature or part of a stipulation and order approved by a federal court). Under New York State law, cigarettes can only be transported into the state by a limited number of state-licensed stamping agents (i.e. wholesalers). The New York Department of Taxation and Finance pre-collects the cigarette excise tax from these state-licensed stamping agents on cigarettes that are sold to retailers, but prior to their delivery to the retailers. This taxing scheme was upheld as specifically applicable against Indian nations on May 9, 2011, by the United States Court of Appeals for the Second Circuit in Oneida Nation of New York x. Xxxxx, 645 F.3d 154 (2d Cir. 2011). Federal and New York State law require that tax stamps be affixed to cigarette packages—prior to their delivery to retailers—reflecting that the required state taxes have been paid. During the relevant time period, New York State imposed a cigarette excise tax of $4.35 per pack or $43.50 per carton. In New York State, only licensed wholesalers may purchase unstamped cigarettes. This is done either directly through the cigarette manufacturer or through other wholesalers. Under New York State law, it is the obligation of state-licensed stamping agents to prepay the excise tax and affix stamps on all cigarette packs. Under New York state and federal law, tobacco wholesalers must report the sales of cigarettes to the state. Codefendant During the relevant time period, Unindicted Coconspirator 1 (UCC1) and Xxxxx Xxxxxxxx owned and operated Cheap Tobacco Wholesale (CTW), a cigarette wholesale business located in Independence, Missouri. UCC1 operated the business with the assistance of Xxxxxxxx until UCC1’s death on October 27, 2011, at which time Xxxxxxxx took over operations. During the relevant time period, Xxxxxxxxxx “Xxxx” Xxxxxxxx owned and operated Brand Name Connoisseurs (BNC), located in Florida. Neither Tadaiyon nor BNC is a licensed tobacco wholesaler or state stamping agent. During the relevant time period, Xxxxx Xxxxxx was president of the Seneca-Cayuga Tobacco Company (SCTC), which is owned by the Seneca-Cayuga Tribe of Oklahoma, a federally recognized Indian tribe. During the relevant time period, HCID, through Xxxxxxxx and Xxxxxxxxx, participated in a conspiracy with Xxxxxx, Tadaiyon, Xxxxxxxx, and others, to transport premium-brand contraband cigarettes onto Indian reservations located in New York State, without New York State’s prior approval, in order to avoid New York State cigarette taxes and reporting requirements. Further, HCID, through Xxxxxxxx and Xxxxxxxxx, participated in a conspiracy with Xxxxxx, Tadaiyon and other individuals located on New York Indian reservations in order to commit wire fraud relating to the sale and transportation of contraband cigarettes. As a result of these conspiracies, New York State suffered significant excise tax loss. The basic manner and means of the conspiracy, as related to HCID, is summarized as follows: During the conspiracy timeframe, UCC1 and Xxxxxxxx, through CTW, trafficked in contraband premium-brand cigarettes. They would make regular purchases purchase the unstamped premium-brand cigarettes from an undercover ATF agent located in Kansas City, Missouri. Sometimes they would then transport the cigarettes back to the CTW warehouse while other times they would arrange for their customer to directly pick up from the ATF undercover warehouse. Tadaiyon was one of CTW’s customers that would receive unstamped, contraband cigarettes. Xxxxxx, despite SCTC manufacturing their own brands of native cigarettes, was interested in selling unstamped premium-brand cigarettes to smoke shops on other Indian nations, specifically in New York State. Xxxxxx would order premium-brand contraband cigarettes from undercover agents (UCAs) Tadaiyon, who would then purchase those cigarettes from CTW. Xxxxxx would sell those premium-brand cigarettes to smoke shops – such as Totem Pole, A.J.’s, and Jan’s – located on New York State Indian reservations. The benefit to those smoke shops was that they did not pay New York State cigarette taxes; thus, they could undercut the prices charged by off-reservation cigarette retailers. In order to facilitate this scheme and transport the contraband cigarettes to New York State, Xxxxxx and Tadaiyon worked with HCID, HCIL, Xxxxxxxx, and Frenchman. Xxxxxx and Xxxxxxxx needed to use HCID because their previous proxy, located in Virginia, was no longer available, the result of the Bureau legitimate New York stamping agent refusing to continue the business arrangement after the Oneida decision. While on at least one occasion HCID participated in this conspiracy by purchasing its own premium-brand cigarettes from BNC (and causing those cigarettes to be transported by the unlicensed Tadaiyon), HCID (through Xxxxxxxx and Frenchman) further participated in the conspiracy by engaging in “cross-docking,” a logistics term-of-art in which HCID would allow Tadaiyon to drop off the load of Alcoholcontraband premium-brand cigarettes at HCID’s warehouse in Nebraska. HCIL, Tobacco, Firearms and Explosives (ATF) in exchange for U.S. Currency. Xxxxxxxx, X. Xxxxxxx Xxxxx, Xxxxx on behalf of Xxxxxx and Xxxxxx X. Xxxxxx SCTC, would coordinate arrange for the cigarette orders and wire transfers transportation of those premium-brand cigarettes via common carrier, from HCID’s warehouse to the vendors Indian smoke shops in New York State – including Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s State. For its role as “cross docker,” Xxxxxx and SCTC would pay HCID $0.25 per carton. HCID was paid by Xxxxxx/SCTC on at least two occasions; HCID would have been paid for a third delivery but for the law enforcement seizure of the contraband cigarette load prior to its arrival at HCID. Xxxxxxxxx was paid by Xxxxxxxx approximately $12,000 in Nebraska. Xxxx Xxxxxxx, AJ’s cash for facilitating the “cross-docking” between Tadaiyon and Xxxxx Xxxxxx transported and caused to be transported into New York State and Xxxxxxx X. Xxxxx possessed unstamped cigarettes the retail smoke shops in New York State without prior approval by state. No one reported the cigarettes to the New York Department of Taxation and Finance and without first paying Finance, as required by law. Further, no one paid the required $4.35 per pack excise taxNew York State cigarette taxes, as required by law. Xxxxx To pay for the cigarettes (which were charged on delivery), the Indian smoke shops would wire money across state lines, often to SCTC. SCTC would then sell those unstamped, untaxed cigarettes at Wolf’s Run store. Sundown would then sell those unstamped, untaxed cigarettes at Jan’s Smoke shop. AJ’s and Xxxxx would also sell those unstamped, untaxed cigarettes to other smoke shops on the reservations in New York State. Stoldt would then sell those unstamped, untaxed cigarettes at his Totem Pole Smoke Shop. Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx would wire transfer money across state lines to prepay Tadaiyon and BNC. BNC would then wire money across state lines to CTW. UCC1 and/or Xxxxxxxx would pay the undercover ATF agents, often in cash. Xxxxx Xxxxxxxxx admits that a conspiracy existed from on or about July 2010 through on or about January 26, 2012; and that after that conspiracy was in effect, on or around July 1, 2011, he entered into an agreement or reached an understanding to commit a crime, namely wire fraud and contraband cigarette trafficking, with one or more people. Frenchman, as warehouse manager of HCID, committed overt acts in furtherance of the conspiracy by facilitating the orders for orders unstamped cigarettes as well as facilitating the transportation of unstamped contraband cigarettes. At , sometimes through “cross docking,” all the time of those wire transfers, Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, XX’s and Xxxxx Xxxxxx knew they were purchasing unstamped cigarettes with the intent knowing that the New York State excise tax of $4.35 per pack would not be pre-collectedpaid, thus allowing the sale as required by state and federal law. Further, Frenchman committed overt acts in furtherance of the cigarettes at a considerable discount and depriving New York State conspiracy by taking delivery of its tax revenue. Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx would place the order for unstamped cigarettes through Xxxxxx Xxxxxx and Xxxxxx X. Xxxxxx. Xxxxxx, using the Seneca Cayuga Tobacco Company (SCTC), would then place orders for those unstamped contraband cigarettes from Tadaiyon Tadaiyon. Moreover, other coconspirators committed overt acts in the Western District of Missouri and BNC. Xxxxxxxx would forward the elsewhere in order to Xxxxx Xxxxxx fulfill and T. Xxxxxxx Xxxxx, and X. Xxxxxxx Xxxxx would e-mail the order for the unstamped cigarettes deliver these contraband cigarette orders to Xxxxxxxx and CTW in Independence, Missouri. After the orders had been placed, through the end of September 22, 2011, Xxxxxxxx, Xxxx Xxxxxx and Xxxxx Xxxxxxxx would pick-up the unstamped cigarettes in the Kansas City, Missouri area and transport them to the SCTC in Grove, Oklahoma. From SCTC, the unstamped cigarettes would be transported to Wolf’s Run, Xxx’s Smoke Shop, AJ’s and the Totem Pole Smoke Shop retailers in New York State by a common carrierState. Xxxx’x Run made purchases of contraband Marlboro and Newport cigarettes on September 15, 2011 and December 15, 2011. Xxxx’x Run received approximately $459,876 in gross profit on these transactions. On October 13, 2011, Xxxxxxx Xxxxx met Xxxxx Xxxxxxxx This conspiracy existed in the parking lot Western District of Missouri and elsewhere, and venue is appropriate in the Holiday Inn Express located in North Kansas City, Western District of Missouri. In the hotel parking lot, Xxxxxxxx transferred possession to Xxxxxxx Xxxxx and Xxxxxxx Xxxxx then possessed those 2,700 cartons (45 cases) of untaxed Marlboro cigarettes and 2,880 cartons (48 cases) of untaxed Newport cigarettes at Wolf’s Run located in Irving, New York.

Factual Basis for Guilty Plea. The parties agree that the facts constituting the offense to which he is pleading guilty are as follows: The facts and overt acts included in the indictment are incorporated into this plea agreement and paragraph 3 by reference. During all times relevantrelevant to this conspiracy, Xxxxxxx X. Xxxxx Xxxxxxxxxx “Xxxx” Xxxxxxxx (hereinafter Tadaiyon) owned and operated Wolf's RunBrand Name Connoisseurs, Corp. (hereinafter BNC), a business located in Irving, Florida. Neither Tadaiyon nor BNC was a licensed New York tobacco wholesaler authorized to bring cigarettes into the State of New York. Wolf's Run was a business that operated a gas station, convenience store Xxxxx Xxxxxxxxxxx and trucking transport business. Neither Xxxxxx Xxxxxxx X. Xxxxx nor Xxxx'x Run was a licensed tobacco wholesaler in New York authorized to bring untaxed cigarettes into New York Stateworked as drivers for Tadaiyon. New York State imposes excise taxes on all cigarettes sold in the state, unless expressly exempted by law or by private agreement between New York State and an Indian nation or tribe (either approved by the legislature or part of a stipulation and order approved by a federal court). Under New York State law, cigarettes can only be transported into the state by a limited number of state-licensed stamping agents (i.e. wholesalers). The New York Department of Taxation and Finance pre-collects the cigarette excise tax from these state-licensed stamping agents on cigarettes that are sold to retailers, but prior to their delivery to the retailers. This taxing scheme was upheld as specifically applicable against Indian nations on May 9, 2011, by the United States Court of Appeals for the Second Circuit in Oneida Nation of New York x. Xxxxx, 645 F.3d 154 (2d Cir. 2011). Federal and New York State law require that tax stamps be affixed to cigarette packages—prior to their delivery to retailers—reflecting that the required state taxes have been paid. During the relevant time period, New York State imposed a cigarette excise tax of $4.35 per pack or $43.50 per carton. In New York State, only licensed wholesalers may purchase unstamped cigarettes. This is done either directly through the cigarette manufacturer or through other wholesalers. Under New York State law, it is the obligation of state-licensed stamping agents to prepay the excise tax and affix stamps on all cigarette packs. Under New York state and federal law, tobacco wholesalers must report the sales of cigarettes to the state. Codefendant Xxxxxxxxxx Xxxxx Xxxxxxxx and Xxxxxxxx would make regular purchases in Kansas City, Missouri, of contraband cigarettes from undercover agents (UCAs) of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in exchange for U.S. Currencycurrency. Xxxxxxxx, X. T. Xxxxxxx Xxxxx, Xxxxx and Xxxxx Xxxxxx would coordinate the orders between Xxxxx Xxxxxxxx and Xxxxxxxx. Tadaiyon and Xxxxxx X. Xxxxxx would coordinate the cigarette orders and wire transfers from the vendors in New York State – including Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and HCID in Nebraska. Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx transported and caused to be transported into New York State and Xxxxxxx X. Xxxxx possessed unstamped cigarettes in New York State without prior approval by the New York Department of Taxation and Finance and without first paying the required $4.35 per pack excise tax. Xxxxx would then sell those unstamped, untaxed cigarettes at Wolf’s Run store. Sundown would then sell those unstamped, untaxed cigarettes at Jan’s Smoke shop. AJ’s and Xxxxx would also sell those unstamped, untaxed cigarettes to other smoke shops on the reservations in New York State. Stoldt would then sell those unstamped, untaxed cigarettes at his Totem Pole Smoke Shop. Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx would wire transfer money across state lines to prepay for orders of unstamped cigarettes. At the time of those wire transfers, Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, XX’s and Xxxxx Xxxxxx knew they were purchasing unstamped cigarettes with the intent that the New York State excise tax would not be pre-collected, thus allowing the sale of the cigarettes at a considerable discount and depriving New York State of its tax revenue. Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx would place the order for unstamped cigarettes through Xxxxxx Xxxxxx and Xxxxxx X. Xxxxxx. Xxxxxx, using the Seneca Cayuga Tobacco Company (SCTC), would then place orders for those unstamped cigarettes from Tadaiyon and BNC. Xxxxxxxx would forward the order to Xxxxx Xxxxxx and T. Xxxxxxx XxxxxXxxxxx, and X. Xxxxxxx Xxxxx Xxxxxx would e-mail the order for the unstamped cigarettes to Xxxxxxxx and CTW in Independence, Missouri. After the orders had been placed, through the end of September 22, 2011, Xxxxxxxx, Xxxx Xxxxxx and Xxxxx Xxxxxxxx would pick-up the unstamped cigarettes in the Kansas City, Missouri area and transport them to the SCTC in Grove, Oklahoma. From SCTC, the unstamped cigarettes would be transported to Wolf’s Run, Xxx’s Smoke Shop, AJ’s and the Totem Pole Smoke Shop in New York State by Wolf’s Run or a common carrier. Xxxx’x Run made purchases of contraband Marlboro and Newport cigarettes on After September 15, 2011 and December 15, 2011. Xxxx’x Run received approximately $459,876 in gross profit on these transactions. On October 1322, 2011, Xxxxxxxx, Xxxx Xxxxxx, Xxxxx Xxxxxxxx, Xxxxx Xxxxxxxxxxx and Xxxxxx Xxxxxxx Xxxxx met Xxxxx Xxxxxxxx would pick-up the orders of unstamped cigarettes from the undercover ATF warehouse in the parking lot of the Holiday Inn Express located in North Kansas City, Missouri, or at the CTW warehouse in Independence, Missouri, and then transport them directly to the HCID in Nebraska. In Xxxxx Xxxxxxxxx, at HCID, would coordinate with HCIL to have the hotel parking lotunstamped cigarettes transported to Jan’s Smoke Shop, AJ’s and the Totem Pole Smoke Shop in New York State. Xxxxxxxxxx Xxxxxxxx transferred possession admits that a conspiracy existed from on or about July 2010 through on or about January 26, 2012; and that after that conspiracy was in effect, on or around July 1, 2011, he entered into an agreement or reached an understanding to Xxxxxxx Xxxxx commit a crime, namely wire fraud and Xxxxxxx Xxxxx then possessed those 2,700 cartons (45 cases) of untaxed Marlboro cigarettes and 2,880 cartons (48 cases) of untaxed Newport cigarettes at Wolf’s Run located in Irvingcontraband cigarette trafficking, New Yorkwith one or more people.

Factual Basis for Guilty Plea. The parties agree that the facts constituting the offense to which he is pleading guilty are as follows: During all times relevant, Xxxxxxx X. Xxxxx owned and operated Wolf's Run, a business located in Irving, New York. Wolf's Run was a business that operated a gas station, convenience store and trucking transport business. Neither Xxxxxxx X. Xxxxx nor Xxxx'x Run was a licensed tobacco wholesaler in New York authorized to bring untaxed cigarettes into New York State. New York State imposes excise taxes on all cigarettes sold in the state, unless expressly exempted by law or by private agreement between New York State and an Indian nation or tribe (either approved by the legislature or part of a stipulation and order approved by a federal court). Under New York State law, cigarettes can only be transported into the state by a limited number of state-licensed stamping agents (i.e. wholesalers). The New York Department of Taxation and Finance pre-collects the cigarette excise tax from these state-licensed stamping agents on cigarettes that are sold to retailers, but prior to their delivery to the retailers. This taxing scheme was upheld as specifically applicable against Indian nations on May 9, 2011, by the United States Court of Appeals for the Second Circuit in Oneida Nation of New York x. Xxxxx, 645 F.3d 154 (2d Cir. 2011). Federal and New York State law require that tax stamps be affixed to cigarette packages—prior to their delivery to retailers—reflecting that the required state taxes have been paid. During the relevant time period, New York State imposed a cigarette excise tax of $4.35 per pack or $43.50 per carton. In New York State, only licensed wholesalers may purchase unstamped cigarettes. This is done either directly through the cigarette manufacturer or through other wholesalers. Under New York State law, it is the obligation of state-licensed stamping agents to prepay the excise tax and affix stamps on all cigarette packs. Under New York state and federal law, tobacco wholesalers must report the sales of cigarettes to the state. Codefendant Xxxxxxxxxx Xxxxxxxx would make regular purchases in Kansas City, Missouri, of contraband cigarettes from undercover agents (UCAs) of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in exchange for U.S. Currency. Xxxxxxxx, X. Xxxxxxx Xxxxx, Xxxxx Xxxxxx and Xxxxxx X. Xxxxxx would coordinate the cigarette orders and wire transfers from the vendors in New York State – including Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and HCID in Nebraska. Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx transported and caused to be transported into New York State and Xxxxxxx X. Xxxxx possessed unstamped cigarettes in New York State without prior approval by the New York Department of Taxation and Finance and without first paying the required $4.35 per pack excise tax. Xxxxx would then sell those unstamped, untaxed cigarettes at Wolf’s Run store. Sundown would then sell those unstamped, untaxed cigarettes at Jan’s Smoke shop. AJ’s and Xxxxx would also sell those unstamped, untaxed cigarettes to other smoke shops on the reservations in New York State. Stoldt Xxxxxx would then sell those unstamped, untaxed cigarettes at his Totem Pole Smoke Shop. Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx would wire transfer money across state lines to prepay for orders of unstamped cigarettes. At the time of those wire transfers, Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, XXAJ’s and Xxxxx Xxxxxx knew they were purchasing unstamped cigarettes with the intent that the New York State excise tax would not be pre-collected, thus allowing the sale of the cigarettes at a considerable discount and depriving New York State of its tax revenue. Xxxxxxx X. Xxxxx, Xxxx Xxxxxxx, AJ’s and Xxxxx Xxxxxx would place the order for unstamped cigarettes through Xxxxxx Xxxxxx and Xxxxxx X. Xxxxxx. Xxxxxx, using the Seneca Cayuga Tobacco Company (SCTC), would then place orders for those unstamped cigarettes from Tadaiyon and BNC. Xxxxxxxx would forward the order to Xxxxx Xxxxxx and T. X. Xxxxxxx Xxxxx, and X. Xxxxxxx Xxxxx would e-mail the order for the unstamped cigarettes to Xxxxxxxx and CTW in Independence, Missouri. After the orders had been placed, through the end of September 22, 2011, Xxxxxxxx, Xxxx Xxxxxx and Xxxxx Xxxxxxxx would pick-up the unstamped cigarettes in the Kansas City, Missouri area and transport them to the SCTC in Grove, Oklahoma. From SCTC, the unstamped cigarettes would be transported to Wolf’s Run, Xxx’s Smoke Shop, AJ’s and the Totem Pole Smoke Shop in New York State by a common carrier. Xxxx’x Run made purchases of contraband Marlboro and Newport cigarettes on September 15, 2011 and December 15, 2011. Xxxx’x Run received approximately $459,876 in gross profit on these transactions. On October 13, 2011, Xxxxxxx Xxxxx met Xxxxx Xxxxxxxx in the parking lot of the Holiday Inn Express located in North Kansas City, Missouri. In the hotel parking lot, Xxxxxxxx transferred possession to Xxxxxxx Xxxxx and Xxxxxxx Xxxxx then possessed those 2,700 cartons (45 cases) of untaxed Marlboro cigarettes and 2,880 cartons (48 cases) of untaxed Newport cigarettes at Wolf’s Run located in Irving, New York.