From: Department of Justice | U.S. Attorney’s Office/Northern District of West Virginia
Two Virginia companies and three individuals indicted on cigarette smuggling charges
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging three individuals and two Virginia-based companies with unlawful cigarette smuggling, Assistant United States Attorney, Criminal Chief Randolph J. Bernard announced today.
Reba Marcelle Myers, age 60, of Clearbrook, Virginia; Lisa Renee Lindquist, age 52, of Winchester, Virginia; John Barrett Fairchild, age 40, of East Islip, New York; Demcorp. Inc. of Clearbrook, Virginia: and Welltown Group of Winchester, Virginia, are alleged to have conspired to profit from the unlawful sale of contraband cigarettes. The indictment charges that the defendants transported large quantities of cigarettes across state lines for redistribution and sale. The cigarettes were acquired in Virginia, where the tax rate for cigarettes is one of the lowest in the nation, and sold in other states, including New York, which has one of the nation’s highest tax rates. The cigarettes were possessed and transported in West Virginia.
Tobacco retailer Dollar Stretcher, of Winchester, Virginia, which was owned by Demcorp. Inc., owned and operated by Myers, and Welltown Group, owned and operated by Lindquist, was responsible for the acquisition of the contraband. Myers and Demcorp. Inc., along with Lindquist and Welltown Group, are alleged to have purchased millions of dollars worth of cigarettes from various wholesalers in the region, primarily with cash, before reselling them to out of state smugglers for a profit.
Each of the five defendants is charged with one count of “Conspiracy to Evade Tobacco Taxes.” Myers, Lindquist, and Fairchild are further charged with one count of “Contraband Cigarettes Trafficking Act.” Each of the defendants faces up to five years in prison and a fine of up to $250,000 on each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Michael D. Stein is prosecuting the case on behalf of the government. The Internal Revenue Service Criminal Investigation, Homeland Security Investigations, and the Frederick County, Virginia Sheriff’s Office led the inquiry.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
