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Feds Lose Track of $127M in Confiscated Cigarettes

ATF reportedly spent funds in 'improper' ways


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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