Prosecutor calls for $872m fine for UPS in untaxed cigarettes case

The prosecution team pursuing a lawsuit against UPS in New York for allegedly delivering untaxed cigarettes has called on the court to impose a $872m fine. New York state lawyer John Oleske told US District Judge Katherine Forrest that the penalty was appropriate because UPS had acted with  a “sense of disregard” in failing to vet shipments from entities with a history of dealing in contraband.

UPS has denied the allegations, saying that it had abided by a prior agreement with the state of New York on compliance.

Jamie Levitt, an attorney for UPS, said that there should be no penalty – but if any fine were levied, it should a small fraction of what the state’s prosecution of what the state had proposed.

Judge Forrest said she would make a ruling before Christmas (25 December).