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Former Ky. cigarette dealer sentenced to a year, agrees to $2 million in restitution for taxes
Reported by: Associated Press
Reported: Friday, December 13, 2013 5:35 PM EST
The former owner of an online cigarette dealership has been sentenced to a year in prison and agreed to pay more than $2 million in restitution to the Kentucky Department of Revenue for selling cigarettes on which taxes weren't paid.
Chavez was the owner of Chavez Inc., doing business as Cigarettes Direct to You, in Louisville.
Prosecutors say Chavez admitted in court to buying unstamped cigarettes from Pedro "Peter" Bello and knowing fake invoices were made. The U.S. attorney's office said no Kentucky tax had been paid on the cigarettes.
Bello, of Miami, has pleaded guilty in a related case and is to be sentenced Feb. 3.