$9M Liquor Smuggling Scheme Alleged in Indictments

BEL AIR, MD — A Jessup liquor distributor and three Maryland residents have been indicted on federal charges that the company sold liquor to New York customers without paying state excise taxes.

A federal grand jury indicted Republic National Distribution Company, LLC, of Jessup, and its employees, Eugene Gerzsenyi, 52, of Glen Burnie; Jason Lockerman, 38, of Bel Air; and Lisa Robbins, 55, of Woodbine, on charges arising from a scheme to defraud the state and city of New York, and registered New York liquor wholesalers.

According to a news release from the U.S. Attorney's officer, the defendants allegedly transferred and moved liquor from Maryland, where the state excise tax rate for liquor was about $1.50 per gallon, to New York, where the state excise tax for liquor was about $7.44 per gallon, for retail sale.

Gerzsenyi was the Assistant Director of Operations for the liquor wholesaler, Lockerman was a salesman for the business and Robbins was an accounting manager.

According to the indictment, from at least June 2009 through June 2012, a number of New York liquor retailers ordered cases of wine and liquor from several retail liquor stores in Cecil County. People working at the Cecil County retailers then passed the orders to Republic National Distribution Company though salesmen, including Lockerman, who knew that the liquor was intended for retail sale in New York. RNDC delivered the ordered liquor to the Cecil County retailers, where it was held for the New York retailers to pick up and ship to that state, where it was sold to customers without the New York excise taxes being paid.

Court documents claim that RNDC, Robbins, Gerzsenyi, and Lockerman facilitated the payment to the company for liquor that was sold to the New York retailers and their agents. The firm allegedly submitted invoices to the Cecil County retailers; the New York retailers paid the Cecil County retailers in cash, which the Cecil County retailers deposited; and then the Cecil County retailers paid RNDC by check.

Along with failing to pay New York excise taxes, prosecutors charge that the Jessup business filed false reports to the Maryland State Comptroller’s Office, indicating that all liquor sold to the Cecil County retailers was intended for resale in Maryland.

The indictment seeks forfeiture of all proceeds traceable to the scheme, including a money judgment of at least $9 million.

If convicted, the company and the three employees charged face a $250,000 fine, and the individual defendants also face a maximum sentence of 20 years in prison, for wire fraud conspiracy and each of four counts of wire fraud. If convicted of the money laundering counts, the indictment seeks forfeiture from RNDC of the money involved in those offenses.