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A long-term investigation, which included court-authorized search warrants, wiretaps, grand jury subpoenas and other investigative tools, exposed the multi-state conspiracy with the culprits smuggling cigarettes purchased in Virginia into NY, then resold with bogus State tax stamps.
By Forum Staff
A Little Neck man has agreed to forfeit more than $1.3 million in cash that was recovered during a long-term investigation into a cigarette-smuggling ring spearheaded by the defendant, Queens District Attorney Melinda Katz recently announced.
Nicholas Galafano, 58, pleaded guilty in February to grand larceny in the third degree and violating a New York State tax law. He was sentenced last week to five years’ probation. Galafano must also forfeit the $1.3 million that was seized at the time of his arrest.
Galafano’s main co-defendant Beatriz Villafane pleaded guilty to grand larceny in the fourth degree and to violating a State law tax. Villafane, 48, of Long Island, was sentenced to a three-year conditional discharge and forfeited cash recovered in her home following her arrest.
The other co-defendant, Ahmed Abualrub, pleaded guilty to lesser charges. Abualrub signed a confession of judgment for $250,000.
A long-term investigation, which included court-authorized search warrants, wiretaps, grand jury subpoenas and other investigative tools, exposed the multi-state conspiracy with the culprits smuggling cigarettes purchased in Virginia into NY, then resold with bogus State tax stamps.
Court-authorized search warrants executed in September 2018 recovered approximately 6,267 cartons of untaxed cigarette and more than $200,000 in cash. Following a search of Galafano’s home, police recovered multiple documents, ledgers and receipts for cigarette orders and documents regarding prices, deliveries and proceeds. Approximately 49 cartons of cigarettes with either counterfeit New York tax stamps or Virginia tax stamps or no stamps at all were also recovered.
According to the charges, during a search of Villafane’s home police found more than 3,500 cartons of untaxed cigarettes, nearly 100,000 counterfeit New York State tax stamps and paraphernalia used to remove and affix stamps, counting machines and more than $200,000 cash.
All cigarette packs sold in New York City are required to bear a joint New York City/New York State tax stamp and only a licensed stamping agent can possess untaxed cigarettes and affix the tax stamp on the packages. The tax on each pack of cigarettes in NYC is currently $5.85 and those monies go to the City and State’s general fund, Katz noted.
“This defendant and others made a concerted effort to enrich themselves at the expense of the public. Every pack of cigarettes Galafano sold, diverted tax dollars from the public making every tax-payer a victim,” the DA added. “Today, our City and State budgets are running on empty thanks to a deadly health crisis. The forfeited funds from this defendant and others will help fund public programs going forward. Those who scheme and scam to fill their pockets with money dedicated to the greater good will find themselves facing serious charges.”
According to Katz, sizeable restitution has been made this year in separate illegal cigarette cases, including: Mohammed Khan, who supplied multiple bodegas in Queens, Manhattan and Brooklyn with untaxed cigarettes, forfeited more than $115,000 payable to the City Department of Finance, and is slated to pay penalties totaling $450,000. Khan has been ordered to pay just over $400,000 to the State Department of Taxation and Finance for penalties and fines. Khan’s co-defendant, Mohammed Ahmed, has forfeited $32,000 to the City Department of Finance.
