Tobacco wholesaler indicted in untaxed cigarette probe

A federal grand jury in Seattle has indicted a New York State tobacco wholesaler in a recent crackdown on a smoke shop near Arlington run by former Stillaguamish tribal leaders who were selling millions of cartons of untaxed cigarettes.

Cigar wholesale shop

The indictment against Arthur “Sugar” Montour, 37, of Perrysburg, N.Y., alleges that he lied in sworn statements about selling cigarettes to the smoke shop in proceedings seeking forfeiture of more than $50,000 paid to him by the smoke shop. In March, three former Stillaguamish tribal council members, Edward Goodridge Sr., 60, Edward Goodridge Jr., 33, and Sara Lee Schroedl, 40, were sentenced to federal prison for making millions of dollars dealing untaxed smokes out of the Blue Stilly Smoke Shop.

In 2007, agents seized millions of cigarettes from the group and said they had generated nearly $55 million in revenue – without paying the $25 million in state taxes owed.

Prosecutors say some of the cigarettes were purchased from Montour’s company, Native Wholesale Supply in New York. They went after about $50,000 that the Blue Stilly shop paid that company for the smokes.

The indictment says Montour filed declarations with the court saying the Blue Stilly never ordered from his company, and denying that he operated a warehouse in New Mexico. Montour is due in court in Seattle next week.

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