Los Angeles man sentenced for massive cigarette tax fraud

A Los Angeles man who helped evade taxes on 143 million cigarettes has been sentenced to federal prison.

Un Hag Baeg got a 46-month sentence on Monday for conspiracy and was ordered to pay more than $7 million to the government.

Continue Reading Below

Baeg ran a company that provided supplies to cargo vessels. Authorities say he evaded millions of dollars in excise taxes due on cigarettes sold in the United States by claiming they were for export only and would be provided to ships sailing out of the Los Angeles and Long Beach ports.

The cigarettes were kept in an L.A. port warehouse and sold in the U.S., with paperwork faked to indicate they'd been exported.

Another man, Isaac Rojas of El Monte, also pleaded guilty last year and awaits sentencing.