2 Plead Guilty To Smuggling Phony Newport Smokes To Miami

MIAMI, FL — As if smoking wasn't bad enough, two men have pleaded guilty to attempting to smuggle $4.4 million in counterfeit cigarettes into Miami from India. Abhishek Shukla and Harish Shabhai Panchal acknowledged that they conspired with Jubilee Tobacco Industries Corp. to bring over phony cigarettes that were "substantially indistinguishable" from American-made Newport cigarettes.

The guilty plea was announced on Tuesday by U.S. Attorney Benjamin Greenberg of Miami; Acting Special Agent In Charge Peter H. Huehl of the Food and Drug Administration's Office of Criminal Investigations; Special Agent In Charge Mark Selby of Immigration and Customs Enforcement's Homeland Security Investigations and Broward County Sheriff Scott Israel.

During a recorded meeting in August of 2017, the Indian citizens told undercover agents that they had been partners for 12 years and that they personally oversaw the production of the counterfeit smokes.

"They also assured the agents that they could counterfeit any American-made menthol cigarette with no problem, as well as other trademarked brands, and that they could produce tobacco blends, which would closely match the legitimate product," federal prosecutors said.

Shukla and Panchal each face maximum prison sentences of up to five years as well as $250,000 in fines and supervised release of up to five years.

In its plea agreement Jubilee, which is also from India, agreed to forfeit $300,000 to the United States.

Federal agents seized a 20-foot container of counterfeit cigarettes on Nov. 1, 2016 after setting up a phony buy. That container had a street value of $1.2 million.

"Within two weeks of the arrival, the co-conspirators sought out FDA-OCI undercover agents offering another shipment, twice as large," prosecutors explained. "On June 9, 2017, the container arrived at the Port of Miami and was again seized with the assistance of Customs and Border Protection Officers, and turned over to FDA-OCI Special Agents." That shipment had a street value of $3.2 million.

Sentencing was scheduled take place at 2 p.m. on Feb. 12 before U.S. District Judge Kathleen M. Williams.

This case is being prosecuted by Assistant U.S. Attorney Thomas Watts-Fitzgerald.

Photo courtesy Wilkie D. Ferguson Jr. U.S. Courthouse