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Monday, September 11, 2006

Ind. Decisions - One Indiana case decided today by 7th Circuit

In USA v. Daryl Harper (ND Ind., Robert L. Miller, Jr., Chief Judge), a 12-page opinion, Circuit Judge Kanne begins:

In early 2002, steep taxes imposed by various levels of government in Illinois resulted in a levy of 92 cents per pack for consumer purchases of cigarettes in Chicago. At the same time, cigarettes sold in Indiana were taxed at a mere 15.5 cents per pack. An entrepreneur with a car and a willing buyer in Chicago could make a pretty penny, especially if coupons could be used to keep a lid on operating expenses.[1] But arbitrage in this context is called tobacco diversion, and it is illegal. Daryl Harper appeals his convictions and sentence for taking part in such a scheme. We affirm. * * *
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[1] In a two-part episode of Seinfeld, Kramer and Newman devised a similar scheme to capitalize on Michigan’s higher deposit for soda bottles and cans by using a postal truck to transport recyclables gathered in New York for return in Michigan. Alas, the plan was foiled by a fanatical auto mechanic in possession of Jerry’s car and JFK’s golf clubs. Seinfeld: The Bottle Deposit: Parts 1 & 2 (NBC television broadcast May 2, 1996).

Posted by Marcia Oddi on September 11, 2006 11:42 AM
Posted to Ind. (7th Cir.) Decisions