Since McCormick is mentioned from time to time, I thought you folks might find this interesting.
For Immediate Release:
Contact: Jeff Cohen (212) 264-8060
June 29, 2000
<center>ATF Suspends McCormick's Distillery Basic Permits
$2 Million in Penalties Assessed
Washington - Beginning July 1, 2000, the Bureau of Alcohol, Tobacco and Firearms (ATF) will suspend for seven days the distillery basic permits of McCormick Distilling Company, Weston, Missouri. The suspension is part of a settlement agreement that also includes McCormick's payment of a $1 million Offer-in-Compromise to resolve alleged violations of the Federal Alcohol Administration Act. The suspension and Offer-in-Compromise stem from McCormick's failure to comply with Federal record keeping requirements relating to the production, shipment, and exportation of distilled spirits.
In a related criminal case, McCormick pled guilty in United States District Court in Newark, New Jersey, to making false entries in required Internal Revenue Code distillery records by characterizing potable distilled spirits as industrial products. The false entries aided other parties who were allegedly involved in a scheme to smuggle distilled spirits disguised as windshield washer fluid and other solvents into the Ukrainian Republic and Russia. As part of the guilty plea, McCormick paid an additional $1 million in tax restitution to the Ukrainian Republic, and a fine of $10,250 to the U.S. Justice Department. On June 1, 2000, Assistant Attorney General James Robinson presented the Ukrainian Ambassador with the $1 million paid by McCormick in restitution for lost Ukrainian excise taxes.
The suspension of McCormick's permits, the $1 million Offer-in-Compromise, and the criminal investigation that resulted in an additional $1 million fine represent ATF's continued emphasis on investigating and taking action against alcohol and tobacco permitees involved in illegal diversion schemes.