May 26 (UPI) -- A federal judge in New York City assessed a $247 million penalty against United Parcel Service Inc. for illegally shipping cigarettes.
The practice of shipping hundreds of thousands of cartons of untaxed cigarettes between Indian reservations, unlicensed dealers and customers in private residences in New York State cost the state and New York City millions in taxes, Federal District Court Judge Katherine B. Forrest said in a 218-page decision on Thursday. It also violated a 2005 agreement between and UPS and the state in which the shipping company agreed not to deliver cigarettes to unlicensed recipients, she wrote.