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Bureau of Alcohol, Tobacco, Firearms and Explosives



ATF News

ATF Revokes Wholesaler's Permit

 



For Immediate Release FY 99-2
Contact: Art Resnick Date: December 14, 1998


 

ATF Revokes Wholesaler’s

Permit

Washington – The Bureau of Alcohol, Tobacco and Firearms

(ATF) announced that the wholesaler and importer basic

permits issued to Harry Tracy Baker IV, dba Manormead

have been revoked following issuance of a Consent Order

issued by Administrative Law Judge Richard L. Sippel.

Manormead, a Santa Barbara, California wholesaler

and importer had been charged by ATF with shipping

over 500,000 cases of distilled spirits, worth over

$24 million dollars to the St. Regis Mohawk Reservation

in upstate New York in violation of Federal and New

York State law. Specifically, Manormead’s permits

were revoked as a result of violations of the Webb-Kenyon

Act and the Twenty-First Amendment of the United States

Constitution. ATF alleged that Manormead shipped and

introduced distilled spirits into New York State for

distribution and sale to buyers who were not registered

with the State of New York as alcohol distributors

and with introducing intoxicating liquor onto the Mohawk

Reservation. Manormead was also charged with allowing

other parties to control its Federal permit as a wholesaler

of alcohol beverages.

The St. Regis Mohawk Reservation, located along the

U.S. and Canadian border has been the focal point of

large scale smuggling of alcohol and tobacco to Canada

to avoid Canadian taxes. In a case last year unrelated

to Manormead, the U.S. Attorney for the Northern District

of New York obtained criminal indictments against twenty-three

individuals for money laundering, currency reporting

violations and defrauding the United States and Canada

of taxes. The scheme involved individuals employing

warehouses located on or near the St. Regis Mohawk

Reservation as staging areas for the smuggling of liquor

and cigarettes into Canada.

Revocation of Manormead’s federal permit to wholesale

alcohol beverages represents the first time ATF has

taken such action with regard to licensees suspected

of engaging in alcohol diversion activities and is

part of an intensified enforcement action by ATF into

the growing problem of alcohol smuggling and diversion.

For further information visit ATF’s web site at www.atf.treas.gov,

or contact ATF’s Public Information Division at (202) 927-8500.

This was last updated on December 15, 1998