In New York City, stamping agents pay cigarette taxes to the government in advance; they purchase and
affix tax stamps to packs for wholesalers, who in turn sell the stamped packs to the more than 9,700 licensed retailers.
Mr. Hammound and nine other men, including his brother, Chawki, conspired to buy cigarettes in North Carolina, which had a 5 - cent per pack
tax,
affixed phony
tax stamps, and sold them in Michigan which had a 75 - cent excise
tax.