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• KANSAS CIGARETTE WHOLESALER CHARGED WITH $25 MILLION FRAUD SCHEME  

The owner of a Kansas wholesale tobacco company and his business associates are charged in a 43-count federal indictment with a scheme to avoid paying taxes on cigarettes that cost the state of Oklahoma and Indian tribes $25 million in tax revenue.

The investigation was begun by the Bureau of Alcohol, Tobacco, Firearms and Explosives in April 2006, when a defendant was stopped by the Kansas Highway Patrol in Coffeyville, Kan. He was transporting a load of cigarettes worth more than $200,000 without required documents and appropriate tax stamps.

On Friday, Acting U.S. Attorney Marietta Parker announced the indictment in which the following defendants are charged:

Gary Lester Hall, 66, Joplin, Mo., the president and owner of Sunflower Supply Company, 1001 W. 7th, Galena, Kan. Hall also exercised control over other business entities including Discount Tobacco Warehouse, Inc., 402 Grand, Joplin, Mo.; National Tobacco Distributors; Rebel Industries, Inc.; Halls Collection, Inc.; Shawnee Tobacco Smoke Shop, 19801 NE 23rd Street, Harrah, Okla., and Sunflower Aircraft, Inc.

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