Corporation Counsel James E. Johnson Announces Lawsuit Against Virginia Convenience Store Supplier Atlantic Dominion for Supplying Cigarette Bootleggers

December 10, 2020

Virginia Wholesaler Knowingly Sells Cigarettes to Retailers Known to Supply NYC-Bound Traffickers
 
Trafficking Cigarettes Damages Our Health, Hurts Our Pocketbooks


Corporation Counsel James E. Johnson announced the filing of a lawsuit alleging that Old Dominion Tobacco Company, Incorporated d/b/a Atlantic Dominion Distributors, participated in the trafficking of contraband cigarettes into New York City in violation of federal laws. Atlantic Dominion advertises itself as the 16th largest convenience store supplier in the U.S.  The lawsuit, filed in Brooklyn federal court, seeks damages and penalties from the Virginia wholesaler for distributing cigarettes to retail customers known to sell to cigarette traffickers.
 
"As we face a pandemic there could be no worse time to undermine public health laws intended to discourage smoking and to deprive the City of millions of dollars in tax revenue it so desperately needs,” said Corporation Counsel James E. Johnson.  “Our message to out of state retailers and wholesalers engaging in illegal cigarette shipments into the City: We will recoup every penny owed to the City and hold you responsible for your illegal conduct.”
 
The complaint against Atlantic Dominion alleges that despite warnings by a major cigarette manufacturer that certain Atlantic Dominion retail customers were selling excessive volumes of cigarette brands favored in New York City, and despite having direct knowledge of cigarette trafficking by certain retail customers, Atlantic Dominion continued to supply those customers and thus engaged in a cigarette trafficking enterprise.  The lawsuit maintains that Atlantic Dominion’s participation in a trafficking network was a clear violation of federal anti- cigarette trafficking and racketeering laws.
 
The New York City Law Department has concluded more successful actions under federal and state anti-cigarette laws than any jurisdiction in the nation in numerous suits against out-of-state retail and wholesale outlets, internet sellers, Indian reservation sellers, and delivery companies, including, in partnership with the New York Attorney General’s office, securing a $98 million judgment against UPS for cigarette trafficking.  
 
The lawsuit against Atlantic Dominion (filed Dec. 8) is being handled by Assistant Corporation Counsel Hope Lu, Deputy Chief Eric Proshansky and Chief Gail Rubin, all of the Affirmative Litigation Division of the New York City Law Department. The Office of the New York City Sheriff supported the investigations.

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