N.Y. man indicted in tobacco case

A federal grand jury in Seattle has indicted a New York tobacco wholesaler in a recent crackdown on a smoke shop near Arlington run by former Stillaguamish tribal leaders who were selling untaxed cigarettes.

The indictment against Arthur "Sugar" Montour, 37, of Perrysburg, N.Y., alleges he lied in sworn statements about selling cigarettes to the smoke shop in proceedings seeking forfeiture of more than $50,000 paid to him by the smoke shop.

In March, three former Stillaguamish tribal council members, Edward Goodridge Sr., 60, Edward Goodridge Jr., 33, and Sara Lee Schroedl, 40, were sent to federal prison for making millions of dollars dealing untaxed smokes out of the Blue Stilly Smoke Shop.

In 2007, agents seized millions of cigarettes from the group and said they had generated nearly $55 million in revenue — without paying the $25 million in state taxes owed.

Prosecutors say some of the cigarettes were purchased from Montour's company, Native Wholesale Supply in New York. They went after about $50,000 that the Blue Stilly shop paid that company for the smokes.

The indictment says Montour denied in court declarations that Blue Stilly ever ordered from his company.

Montour is due in court in Seattle next week.

Times staff and news services