Arrest of Two People Accused of Running Contraband Cigarette Ring

By Vendaryl Jenkins (202) 927-3580

On July 10, 2001, after a 9 month investigation, search and arrest warrants were executed in a joint operation involving law enforcement agents from ATF, IRS, California Bureau of Equalization, and the San Jose Police Department. A total of 27 search warrants were executed for various businesses, residences and vehicles based upon violations involving tax evasion, money laundering, receiving/possessing contraband cigarettes and failure to pay tax. Two arrest warrants were also executed for the arrest of the subjects of the investigation, Luu Thien Le, and his wife, Thao Thi Nguyen, for possessing and selling contraband cigarettes. Approximately 823 cases of contraband cigarettes were seized through the execution of these warrants.

Simultaneously, search warrants were executed by ATF in the greater Los Angeles area for similar violations. These search warrants and consent searches resulted in the seizure of approximately $10,000 in cash, 120 full cases and 47 half cases of counterfeit and unstamped cigarettes, and a sheet containing approximately 120 counterfeit tax stamps. Officials estimate the activities have cost the state of California $1,500,000 in unpaid tax revenue. q

New Assistant to the Chief of ALFD

By Tracy McNeil (202) 927-8140

The Alcohol Labeling and Formulation Division (ALFD) welcomes our recently selected Assistant to the Chief, Stephen F. Albrecht. Steve, who hails from Philadelphia, credits his successful transition here to the friendly demeanor of the folks at ATF headquarters and ALFD. He says he is very much impressed with how helpful everyone is.

Steve joined the Bureau of Alcohol, Tobacco and Firearms in 1976, as an inspector in Philadelphia. He then worked as an inspector in Trenton, NJ, and a Special Operations Inspector in Lansdale, PA. In October of 1998, he became an Area Supervisor in Philadelphia. As an inspector, Steve especially enjoyed the challenges of working on liquor diversion, smuggling, and label fraud cases.

Born and raised in a suburb of Baltimore, Steve received a bachelor's degree in zoology from the University of Maryland, College Park, in 1975. An avid rugby player, he played with the Chesapeake and South Jersey rugby teams for almost twenty years. For relaxation, he enjoys non-fiction reading and attending his children's sports activities.

Steve has been married for twenty-one years. His wife, Mary Beth, and children, Stephen, 17, and Sara 14, currently reside in Philadelphia. q

Offers-in-Compromise

By Desmond Wooser (202) 927-8130 and Evelyn Wilson (202) 927-3580

The Bureau has accepted a $3,500 Offer-in-Compromise from Atlanta Brewing Company for violations of 26 USC 5674(b) 27 USC 204(e) and USC 207. These violations occurred when the brewery removed bottles and kegs without having certificates of label approval.

ATF has accepted an Offer-in-Compromise of $5,000 from Bedford Brands Ltd. of Larchmont New York for violations of 27 USC 205(e) and 27 USC 215(a). Bedford Brands imported wines without an approved certificate of label approval, government health warning statement, sulfite warning, or importer information.

ATF has accepted an Offer-in-Compromise from the Candle Corporation of America located in Texarkana, Texas for violations of 26 USC 5603(b). The Candle Corporation of America is a user of specially denatured alcohol and failed to maintain required records, follow approved formulas, post the SDA Permit, and give notice of changes in then corporation.

ATF recently accepted an Offer-in-Compromise for $50,000 from Albertson's, Inc., operators of a large chain of retail stores in the United States. The company violated the Federal Alcohol Administration Act by selling distilled spirits at wholesale without the prerequisite basic permit. Albertson's also violated the Internal Revenue Code for nonpayment of taxes and recordkeeping infractions relative to these sales. This activity occurred at a single Albertson's store in Sacramento, California, where various employees made a succession of large quantity sales of distilled spirits to a single unidentified customer on six or seven occasions between March 1, 1997, and November 30, 1997. This individual allegedly smuggled the distilled spirits into Canada for resale without payment of the required Canadian taxes. q