Man convicted in Philly of smuggling tobacco products to New York to avoid taxes

PHILADELPHIA (KYW Newsradio) — A Staten Island man has been convicted in a federal jury trial in Philadelphia of smuggling tobacco products purchased in Pennsylvania into New York and avoiding millions of dollars in state excise taxes.

Prosecutors say 43-year-old Ramzi Al Najar ran Capital Trade, a Bristol, Bucks County-based tobacco wholesaler.

Assistant U.S. Attorney Robert Livermore says for a six-year period between 2011 and August 2017, Al Najar shipped tractor trailer loads of tobacco to New York from his business and conspired with his customers to evade the Empire State tobacco taxes. 

"The New York state excise taxes especially on cigars and things like that are very high. During a portion of the conduct, the tax rate was about 70 percent. Whereas here in Pennsylvania, the tax rates on certain cigar products is zero percent." 

Livermore says the tax loss to New York runs into millions of dollars.

Al Najar is free on bond to await his sentencing in April.