Takedown by Bronx DA, New York State Tax Dept., Homeland Security Investigations
and NJ Treasury Office of Criminal Investigation Yields
Equipment and Trove of Forged Tax Stamps
Bronx District Attorney Darcel D. Clark, New York State Department of Taxation and
Finance Acting Commissioner Nonie Manion, Brian Michael, Special Agent in Charge,
Homeland Security Investigations Newark; and New Jersey State Treasurer Elizabeth Maher
Muoio announced that a joint investigation has resulted in indictments charging 21 people
with forging millions of cigarette tax stamps and trafficking in illegal cigarettes that resulted in
the evasion of more than $15 million in taxes and undercutting small businesses.
District Attorney Clark said, “This scheme involved defendants who allegedly forged and
printed millions of tax stamps in an apartment and a printing store. Truckloads of cartons of
cigarettes per week were brought from North Carolina, and the defendants put the stamps on the
packs and sold them to stores throughout the metropolitan area. This scheme allegedly cheated
the state and city out of more than $15 million in taxes in the last six months alone. In addition,
this scheme hurts law-abiding businesses that cannot compete with stores illegally selling
untaxed, cheap cigarettes.”
Acting Commissioner Manion said, “The bust of this sophisticated counterfeit tax stamp
ring, the largest in Tax Department history, required deft coordination with our partners in law
enforcement. I thank them for continuing to support our mission to break up criminal networks
like this one and other operations that deprive communities of vital tax revenue and put honest
business owners at a competitive disadvantage.”
Special Agent in Charge Michael said, “This type of criminal activity generates huge profits
for criminal organizations, both here and abroad, while depriving communities of the benefits of
tax revenues and harming small businesses. Those who engage in such forgeries should know that the cooperative efforts of local, state, and federal law enforcement agencies will ensure that
they are apprehended.”
New Jersey State Treasurer Maher Muoio said, “This criminal enterprise sought to cheat
taxpayers in New York and New Jersey out of millions of dollars by peddling truckloads of
cigarettes with counterfeit tax stamps. Thankfully, the combined efforts of city, state, and federal
law enforcement in New York and New Jersey shut down this operation and put the defendants
out of business.”
District Attorney Clark said 17 of the defendants were arrested in takedowns on November
14, 2018 through November 16, 2018 in locations in the Bronx and Yonkers. Nearly two million
counterfeit tax stamps, a printing press and other equipment, as well as more than $120,000 cash
were recovered. Authorities also recovered records revealing the transfer of tens of thousands of
dollars out of the U.S.
The defendants are variously charged with first and second-degree Criminal Tax Fraud,
second-degree Money Laundering, first-degree Criminal Possession of a Forged Instrument, first degree
Forgery, Cigarette and Tobacco Products Tax and fourth and fifth-degree Conspiracy. If convicted of the top count of the
indictment, many of the defendants face 8 1/3 to 25 years in prison.
According to the investigation, between March 2018 and November 2018, defendants Luis
Ortiz and Ernesto Guerrero allegedly designed stencils in order to print stamps and sell them for
distribution throughout New York City and state without paying city and state taxes. Defendants
Bolivar Clase and Nelsa Soler allegedly acquired special wax paper and other supplies, and
Guerrero and Ortiz allegedly manufactured the stamps in Ernesto Printing, at 353 Rider Avenue
in the Bronx, as well as in Ortiz’ residence at East 173 Street in the Bronx.
Defendants Carlos Santos, Rafael Dominguez and Wilson Dominguez allegedly resold the
stamps or affixed them to packs of cigarettes using a clothes iron and then sold the cigarettes.
The other defendants allegedly transported the cigarettes from North Carolina or bought
and sold stamps throughout New York City and Westchester County
An indictment is an accusatory instrument and not proof of a defendant’s guilt.
DEFENDANTS ARRESTED
CARLOS SANTOS, 61, 812 East 169 Street, Bronx
RAFAEL DOMINGUEZ, 52, 701 West 180 Street, Manhattan
WILSON DOMINGUEZ, 49, 812 East 169 Street, Bronx
LUIS ORTIZ, 55, 1544 East 173 Street, Bronx
FELIX TAVEREZ, 44, 1523 Washington Avenue, Bronx
REYNA ALVAREZ, 50, 1980 7th Avenue, Manhattan
ANTEMIA ALVAREZ, 30, 1980 7th Avenue, Manhattan
ERNESTO GUERRERO, 57, 353 Rider Avenue, Bronx
BOLIVAR CLASE, 62, 1212 Grant Avenue, Bronx
NELSA SOLER DEL ROSARIO, 57, 1212 Grant Avenue, Bronx
AMARIAM GARCIA-CRESPO, 28, 1361 College Avenue, Bronx
FELIPE CRUZ, 56, 37 Featherbed Lane, Bronx
NANCY LEBRON-DECRUZ, 52, 37 Featherbed Lane, Bronx
FREDIS GUERRERO, 62, 325 Hawthorne Avenue, Yonkers
JORGE TIGUA, 52, 2020 Morris Avenue, Bronx
FAUSTO LOPEZ, 54, 2585 Grand Concourse, Bronx
YAHYA QUATAESH, 67, 39 Landscape Avenue, Yonkers
UNAPPREHENDED DEFENDANTS
SANDY BERAS
JESUEL PAULINO
FRANCISCO PAULINO
MARYLEIDA RODRIGUEZ DE GARCIA
