Oklahoma City tobacco wholesaler says slow response to complaints has cost state millions

Slow government response to repeated complaints of illegal tobacco sales has cost the state and legitimate distributors millions of dollars, according to longtime Oklahoma City tobacco wholesaler Alan Beck.
For six years, Beck has complained to the Oklahoma Tax Commission and elected state officials that certain distributors were illegally selling huge volumes of untaxed tobacco products in Oklahoma.
Beck, 53, says he never saw much response to his complaints until April 6 when a 59-count federal indictment was unsealed that accuses three Edmond men of profiting from the illegal sale of more than $3 million worth of untaxed cigarettes and smokeless tobacco products.
“What took them so long?” Beck asks. “I’m hoping they’ll indict a bunch more people. There’s a lot of other people cheating.”
U.S. Attorney Sandy Coats said he couldn’t comment on the likelihood of additional indictments.
However, Coats said he believes criticism of the Oklahoma Tax Commission for failure to take action on complaints is unjust.
“Any suggestion that the Oklahoma Tax Commission might have been negligent in its efforts is incorrect,” Coats said. “They were a critical partner in this important investigation.”
Coats said it was at the request of investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives and other federal agencies that the Tax Commission delayed enforcement action for years.
A regional, and “in some ways nationwide” investigation of companies allegedly involved in the illegal sale of untaxed tobacco products could have been compromised if Oklahoma Tax Commission officials had failed to cooperate, he said.

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