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2 plead guilty in cigarette case

Associated Press - November 25, 2009 6:35 AM ET

GREENVILLE, Miss. (AP) - Two businessmen have pleaded guilty to their involvement in a cigarette distribution scheme to defraud the federal government and several states, including Mississippi, out of more than $20 million in taxes and fees.

Federal prosecutors say 67-year-old Jerry Burke of Tupelo and 43-year-old Randy Benham of Cordova, Tenn. pleaded guilty Tuesday to carrying out a scheme to defraud federal and state governments, making false monthly tobacco reports and money laundering.

According to court records, Benham, owner of Globe Distributing in Tupelo, created false documents to make it appear tobacco products were being sold in Mississippi when they actually were being sold elsewhere.

The Clarion Ledger reports Burke and Benham are expected to be sentenced in 60 days.

Information from: The Clarion-Ledger, http://www.clarionledger.com

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