Published: Thursday, September 10, 2009
More federal charges in Stilly Smoke Shop smuggling case
The case produces seven more people who are now accused of conspiracy.
ARLINGTON — Seven more people face federal charges in connection with the Blue Stilly Smoke Shop's smuggling conspiracy, where former Stillaguamish tribal leaders made millions of dollars selling untaxed cigarettes.
According to federal documents, the group, which includes both U.S. and Canadian citizens, avoided more than $28 million in taxes on the tobacco products they smuggled to the smoke shop.
The charges are the latest in a federal investigation of the shop, which was owned by Eddie Goodridge Jr., who was the Stillaguamish Tribe's executive director until he was charged last year with smuggling and money laundering,
The shop was also owned by longtime tribal leader Ed Goodridge Sr. and Linda Goodridge, Eddie Goodridge's parents. Sara Schroedl, a relative of the Goodridges was also part owner. Both Goodridge men and Schroedl are in federal prison for their crimes in connection with the smoke shop. Linda Goodridge is serving a home detention sentence.
Arthur Montour, a Seneca tribal member and owner of Native Wholesale Supply in Perrysburg, N.Y., was charged in federal court in Seattle with 15 counts of trafficking in contraband cigarettes, according to the Department of Justice. Peter Montour and Kenneth Hill, both of Canadian tobacco company Grand River Enterprises, face the same charges. It was not clear Wednesday whether *Arthur Montour and Peter Montour are related to each other.
Arthur Montour pleaded not guilty in federal court in Seattle last month to charges that he made false statements to federal prosecutors. He is expected to stand trial on those charges in November.
In a separate grand jury indictment, Rick Conn, Jay Silverman, Carol Silverman and Matthew Cunningham were all charged with conspiracy to traffic contraband cigarettes and conspiracy to launder money. It was unclear Wednesday whether Jay Silverman and Carol Silverman are related to each other.
Each charge carries up to five years in prison, three years of supervised release and a fine of $250,000, according to federal documents.
Federal prosecutors say Arthur Montour, Peter Montour and Hill sold more than 422,000 cartons of cigarettes to the Blue Stilly Smoke Shop between 2003 and 2008. Four people, Conn, Jay Silverman, Carol Silverman and Cunningham, are accused of shipping more than 1 million cartons of untaxed cigarettes to the Blue Stilly Smoke Shop, avoiding more than $20 million in taxes, federal prosecutors said.
Cigarette shipments from Native Wholesale Supply, Arthur Montour's New York business, should have been assessed taxes of more than $8 million, federal prosecutors said.
Krista J. Kapralos: 425-339-3422, kkapralos@heraldnet.com.
According to federal documents, the group, which includes both U.S. and Canadian citizens, avoided more than $28 million in taxes on the tobacco products they smuggled to the smoke shop.
The charges are the latest in a federal investigation of the shop, which was owned by Eddie Goodridge Jr., who was the Stillaguamish Tribe's executive director until he was charged last year with smuggling and money laundering,
The shop was also owned by longtime tribal leader Ed Goodridge Sr. and Linda Goodridge, Eddie Goodridge's parents. Sara Schroedl, a relative of the Goodridges was also part owner. Both Goodridge men and Schroedl are in federal prison for their crimes in connection with the smoke shop. Linda Goodridge is serving a home detention sentence.
Arthur Montour, a Seneca tribal member and owner of Native Wholesale Supply in Perrysburg, N.Y., was charged in federal court in Seattle with 15 counts of trafficking in contraband cigarettes, according to the Department of Justice. Peter Montour and Kenneth Hill, both of Canadian tobacco company Grand River Enterprises, face the same charges. It was not clear Wednesday whether *Arthur Montour and Peter Montour are related to each other.
Arthur Montour pleaded not guilty in federal court in Seattle last month to charges that he made false statements to federal prosecutors. He is expected to stand trial on those charges in November.
In a separate grand jury indictment, Rick Conn, Jay Silverman, Carol Silverman and Matthew Cunningham were all charged with conspiracy to traffic contraband cigarettes and conspiracy to launder money. It was unclear Wednesday whether Jay Silverman and Carol Silverman are related to each other.
Each charge carries up to five years in prison, three years of supervised release and a fine of $250,000, according to federal documents.
Federal prosecutors say Arthur Montour, Peter Montour and Hill sold more than 422,000 cartons of cigarettes to the Blue Stilly Smoke Shop between 2003 and 2008. Four people, Conn, Jay Silverman, Carol Silverman and Cunningham, are accused of shipping more than 1 million cartons of untaxed cigarettes to the Blue Stilly Smoke Shop, avoiding more than $20 million in taxes, federal prosecutors said.
Cigarette shipments from Native Wholesale Supply, Arthur Montour's New York business, should have been assessed taxes of more than $8 million, federal prosecutors said.
Krista J. Kapralos: 425-339-3422, kkapralos@heraldnet.com.
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