Feds reach deal with online cigarette company

Published May 8, 2013 6:22pm ET



LOUISVILLE, Ky. (AP) — Federal prosecutors have reached a $3.1 million settlement with the owners of an online cigarette dealership over taxes owed on the smokes, just days after one of the owners pleaded guilty to taking part in a scheme to avoid paying the tariffs.

The agreement released Wednesday requires 48-year-old Israel Chavez of Louisville and his ex-wife, Pam Chavez, to turn over the contents of 12 financial accounts, as well as more than 10 million assorted tobacco products and a variety of warehouse equipment.

Already a print subscriber? Click here to login/register your account

Trusted reporting.Unlimited access.

Subscribe for full access to Washington Examiner coverage, expert political analysis, and subscriber-only journalism.

Get Unlimited Access

Already a member? Log in

Cancel anytime.