From: Department of the Treasury | Alcohol and Tobacco Tax and Trade Bureau
ROANOKE, VIRGINIA – The former President of Cherokee Tobacco and Firebird Manufacturing, was sentenced on January 11, 2016 in the United States District Court for the Western District of Virginia in Roanoke for tax evasion, wire fraud, and engaging in monetary transactions with funds from specified unlawful activity.
Kathryn Crabtree Farley, 46, of Halifax, Va., was sentenced to a total of 60 months incarceration for the fraud charges as well as Contraband Cigarette Trafficking Act (CCTA) violations and was ordered to pay $3,638,390 in restitution to the Alcohol and Tobacco Tax and Trade Bureau (TTB) and $1,098,991.23 to Firebird Manufacturing.
Farley had been indicted on 22 counts of fraudulent refusal to pay or evasion of over $13,000,000 in federal cigarette excise tax, seven counts of violating the contraband cigarette trafficking act, seven counts of wire fraud, six counts of money laundering and five counts of engage in monetary transaction with funds from specified unlawful activity.
The investigation of the case was conducted by TTB, the Internal Revenue Service, the Virginia State Police, and the United States Department of Agriculture. Assistant United States Attorney Joseph Mott prosecuted the case for the United States.
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