$1.7 Million Fine Levied in Counterfeit Newport Cigarettes Case

GREENSBORO, N.C., March 17 /PRNewswire/ -- Two wholesale cigarette distributors will have to pay $1.7 million for their role in the distribution of millions of counterfeit cigarettes, an Illinois district court judge recently ordered.

Cam-Kat, Inc. and Mustapha Kechtban participated in the sale of millions of fake Newport cigarettes provided by Florida concern Canstar (U.S.A.), which earlier had been fined $2.5 million for its role in the scheme.

Judge James B. Moran called Cam-Kat and Kechtban "major players" in Canstar's effort to distribute nearly 6 million counterfeit Newports. More than 26,000 cartons of the fake cigarettes were seized during a court- authorized raid in 2003 on a Franklin Park, IL warehouse controlled by Canstar.

Judge Moran's ruling marked the third time in recent months that Illinois courts have found against fraudulent dealers of counterfeit Newports.

"Judge Moran's ruling should underscore the gravity of the issue of cigarette counterfeiting in this country," said Ronald Milstein, Vice President, General Counsel of Lorillard. "Whether it be the central distributor of millions of these fake cigarettes - or simply a convenience store owner looking to score a quick buck on a few fake cartons - the message is clear: Lorillard will not tolerate this practice, and will take all actions to make you pay for your illegal activity."

Similar cigarette counterfeiting cases currently are pending in Arizona, California, Kansas, Michigan, Nevada, New Jersey, New York, North Carolina, Pennsylvania and Texas.

Greensboro, N.C.-based Lorillard is the nation's oldest tobacco company, founded in 1760. They manufacture Newport, Old Gold, Maverick, True, Kent, Satin and Max.