Feds Lose Track of $127M in Confiscated Cigarettes

ATF reportedly spent funds in 'improper' ways

   

Feds Lose Track of $127M in Confiscated Cigarettes

The Bureau of Alcohol, Tobacco, Firearms and Explosives has come under fire after losing track of 2.1 million cartons of cigarettes worth $127 million.

The Washington Post reports that the Justice Department inspector general – Michael E. Horowitz – said that they found a “lack of oversight and controls to ensure that cash, cigarettes… were accurately tracked, properly safeguarded and protected from misuse.” This information was released on a 68-page report regarding an investigation that examined 20 ATF undercover operations between 2006 and 2011.

The agency made $162 million from building cases against cigarette smugglers. The investigation found that an undercover informant selling cigarettes was able to keep $4.9 million of the $5.2 million profit from the operation and failed to submit proper documentation.

Horowitz added that the ATF spent funds in “improper, unnecessary and unreasonable” ways.


Article printed from InvestorPlace Media, http://investorplace.com/2013/09/feds-lose-track-of-127m-in-confiscated-cigarettes/.

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