toledoblade.com --

A Jordanian man living in Michigan has been arrested and more than $1 million worth of untaxed cigars, snuff, and other tobacco products has been confiscated from self-storage facilities in West Toledo - the biggest seizure in the history of the Ohio Department of Taxation.

Ibrahim Al-Niqrish, 44, identified by court records as a foreign national from Jordan who resides in Dearborn, Mich., was arrested last week in connection with the seizure of more than 1 million cigars, 12,000 cans of snuff, and other tobacco products.

The merchandise was seized from self-storage units at the Stop-N-Lock, 5544 Jackman Rd., and the U-Haul Self Storage facility, 50 West Alexis Rd., that were leased by a firm identified as IMW Enterprises Inc., according to a taxation department announcement yesterday.

The seizure is part of a six-month investigation by the Ohio Department of Taxation and part of a larger investigation into tobacco smuggling.

Authorities said they believe the untaxed goods were to be sold in convenience stores and carryouts in Michigan, where the sales tax on cigarettes and other tobacco products was raised last year to among the highest in the country.

Cigarettes in Michigan have a sales tax of $2 per pack, for example, compared with 55 cents per pack in Ohio.

Duane Coldiron, top, and Richard Noss of the Ohio Department of Taxation look over more than $1 million in illegal tobacco seized from two Toledo storage facilities.
( OHIO DEPARTMENT OF TAXATION )

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The Ohio tax on other tobacco products, such as those that were seized, is 17 percent of the wholesale price compared with 32 percent in Michigan.

Mr. Al-Niqrish, whose first name also was spelled Ibrihim, was charged by Ohio Taxation Department enforcement agents with one felony count of possessing untaxed tobacco products and one misdemeanor count of transporting tobacco products without a license. He was booked into the Lucas County jail following his arrest, but was released Thursday to the custody of U.S. marshals.

He was returned to Michigan, where is already facing federal charges of illegal trafficking of cigarettes filed April 14 by federal Alcohol, Tobacco, Firearms and Explosives agents in Detroit, said special agent Donald Dawkins.

Mr. Al-Niqrish was released on an unsecured $10,000 bond after an initial appearance Thursday in U.S. District Court for the Eastern District of Michigan in Detroit, court officials said. Neither Mr. Al-Niqrish nor his attorney could be reached for comment.

Mr. Dawkins said the federal charges involve trafficking tobacco products between Ohio and Michigan. Citing the ATF's ongoing investigation, he declined to say if anyone else has been arrested or charged in the case. He said ATF agents were in Toledo last week.

Toledo Municipal Court records indicate the incidents in Ohio occurred between March and April. Although IMW Enterprises was at one time granted a license by Ohio to distribute other tobacco products, the firm's license expired Jan. 31 and was not renewed by the state, according to records filed in U.S. District Court in Michigan.

Bob Bray, administrator of the Ohio Department of Taxation's enforcement division, said the tobacco products seized at the self-storage units are not stolen, but he declined to say where they originated.

The seizures and arrest came as a result of a tip from the Ohio Department of Public Safety about unpacked tobacco in West Toledo. No other arrests have been made or warrants issued in the ongoing investigation, Mr. Bray said.

Estimated Ohio taxes on the seized items would exceed $150,000, state Tax Commissioner William W. Wilkins said in a statement yesterday. Pending judicial review, Mr. Wilkins said the seized items will eventually be sold with the applicable tax going into state coffers.

"The seizure of these products represents another of this department's ongoing efforts to eliminate the unfair competition created for honest merchants when someone tries to sell untaxed products of any kind," Mr. Wilkins said.

If convicted of the Ohio charges, Mr. Al-Niqrish could receive up to 18 months in jail and a fine of up to $2,500 on the felony charge and 30 days in jail and a $250 fine on the misdemeanor offense. Additional state and federal charges may be filed.

In Michigan, another criminal case against Mr. Al-Niqrish is still pending in federal court in Detroit.

According to court records, Mr. Al-Niqrish is accused of purchasing several hundred thousand dollars worth of contraband cigarettes from undercover federal agents at various times from October, 2004 through April, 2005. Counterfeit cigarettes are those that do not have any state tax stamps affixed to them.

During each transaction, Mr. Al-Niqrish paid cash for the counterfeit cigarettes, court documents show.

Included in the court record is information about a Nov. 15 federal search warrant that was executed at the Roadway Express trucking company, 6180 Hagman Rd. in North Toledo. Agents found about 1,000 cartons, or 200,000 individual cigarettes, in a shipment there that was marked "toys" and was addressed to "Sam Ali."

ATF agents allowed the shipment to proceed and monitored Mr. Al-Niqrish as he took possession of the shipment. They then followed him back into Michigan.

The investigation revealed that Mr. Al-Niqrish rented several units in various self-storage facilities in Toledo and in Allen Park, Mich., where he was known to stash the contraband tobacco products, court papers state.

At one point during his interactions with undercover agents, Mr. Al-Niqrish asked for their help in smuggling two of his family members into the United States, court records show.

"He advised that if he was successful with his family members, the potential existed for them to assist him in smuggling many more aliens into the United States," the complaint said.

Contact Christina Hall at
chall@theblade.com
or 419-724-6007.

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