Rogue ATF Agents Hock Cigarettes, Add Millions to Unauthorized Bank Account

By Beth Baumann

Things are shaking up at the Department of Alcohol, Tobacco, Firearms and Explosives (ATF)…. and not in a good way.

The New York Times recently uncovered a secret bank account set up by rogue ATF agents out of Bristol, Virginia. The agents were illegally peddling cigarettes and stashing the money in this off-the-books bank account. The agents were directing their informants to buy untaxed cigarettes, mark them up and sell them for a profit, generating millions in profit.

From the New York Times:

The operation, not authorized under Justice Department rules, gave agents an off-the-books way to finance undercover investigations and pay informants without the usual cumbersome paperwork and close oversight, according to court records and people close to the operation.

The secret account is at the heart of a federal racketeering lawsuit brought by a collective of tobacco farmers who say they were swindled out of $24 million. A pair of A.T.F. informants received at least $1 million each from that sum, records show.

The scheme relied on phony shipments of snack food disguised as tobacco. The agents were experts: Their job was to catch cigarette smugglers, so they knew exactly how it was done.

Money from the operations was used for a …Read the Rest

Source:: Bearing Arms