of Alcohol- Tax Evasion
By Tami Light (202) 927-3580
41; Miguel Delgado, 42; and Jose Luis Bermudez, 58, were found guilty
of conspiracy to defraud the United States by evading excise taxes
on distilled spirits. The defendants operated a sophisticated scheme
which began with ordering 26,000 cases of tax-free alcohol from
a U.S. producer, exporting the alcohol to Honduras, re-importing
the same alcohol to a bonded warehouse in Miami allegedly for re-exportation
to Guatemala and Venezuela, and then ended with the diversion of
the alcohol to Buffalo, New York, where it was sold within the United
States. Approximately $800,000 in Federal excise taxes was evaded
as a result of this scheme. The men are scheduled to be sentenced
on June 25, 2001. They face a maximum of five years in prison each
on at least 20 counts of conviction. These convictions send a strong
message that those who seek to evade taxes on alcohol and unlawfully
profit from not paying those taxes will be vigorously prosecuted.
Craft Brewers Conference
Compton (202) 927-8130
from the Office of Alcohol and Tobacco and the Seattle Field Division
attended the National Craft Brewers Conference and BrewExpo America
held in Portland, Oregon, April 5-7, 2001. The ATF booth was staffed
by Specialist Di-Anne Fletcher of the Market Compliance Branch,
Roger Bowling, Chief, National Revenue Center, and Inspector Bernie
Kipp. Susan Stewart, Chief, Alcohol Labeling and Formulation Division
made a presentation to approximately 40 craft brewers at their national
convention. The presentation covered the basics of malt beverage
labeling, statement of process requirements, and proposed Federal
Compton (202) 927-8130
Industry Operations, New York Field Division, accepted an Offer-in-Compromise
(OIC) of $300,000 from Diamond Hong, Inc., Brooklyn, New York. Diamond
Hong, Inc. caused the importation, into the United States, of distilled
spirits that did not contain the required Government Warning statement
on the labels. The proprietor obtained the distilled spirits through
an affiliate company. In addition to the OIC, Diamond Hong, Inc.
served a 45-day suspension.
Area Public Reading File
By Nancy Sutton
Division is issuing a General Notice announcing that copies of the
comments generated by California Coast viticultural area Notice
of Proposed Rulemaking (NPRM) will be available for public viewing
in San Francisco, CA, until the rulemaking process is complete.
The California Coast proposed area covers approximately 22,000 square
miles of predominantly California coastline area, from Mexico to
north of San Francisco in Mendocino County, and encompasses 67 ATF-approved
viticultural areas. The NPRM comment period closes April 25, 2001,
and 131 letters have been received as of April 10, 2001, with a
wide majority opposing the petition.
Viewing of the
petition, the proposed regulations, the appropriate maps, and any
written, e-mail or fax comments received is available through Specialist
Nancy Sutton (415-744-9420) at 221 Main Street, 11th Floor, San
Francisco, CA. The comments, only, are also available during normal
business hours at the ATF Reading Room in Washington, DC.
The San Francisco
ATF office does not have comments related to any other ATF notices.