Storeowner allegedly imports contraband cigarettes

CNMI Customs agents arrested Tuesday in San Vicente a storeowner who allegedly paid $20,000 to a Customs’ confidential source to deliver contraband cigarettes for her store.

Gui Han Xu, 43, was arrested for importation of contraband and conspiracy. Her bail was set at $10,000 cash plus $20,000 in unsecured bond.

Xu appeared in Superior Court yesterday with her counsel, F. Matthew Smith. She later posted a $10,000 cash bail.

Assistant attorney general Chester Hinds had recommended a $100,000 cash bail.

Smith argued that $10,000 cash is more than enough, citing, among other things, that Xu is not a flight risk as she has been in the CNMI for 16 years and owns some businesses.

Associate Judge David A. Wiseman noted that Xu was previously charged with selling cigarettes to a minor but the case was eventually dismissed without prejudice. That means the government can re-file the case in the future.

Drug Enforcement Administration Task Force officer John Henry Sablan stated in his report that he and a Customs official interviewed last Nov. 20 a Customs confidential source, who gave them information about Xu and Xu’s Ming Yang Store in San Vicente.

Sablan said the confidential source disclosed that he notified a Customs official on Nov. 20 that there were 25 cases of contraband cigarettes concealed within his cargo container. The source said he does business with Xu and Ming Yang Market and the cigarettes were for Xu.

The source disclosed that Xu ordered goods through the source’s wholesale business for the Ming Yang Store.

The businesswoman has been allegedly asking if the source can provide contraband cigarettes for her to sell at Ming Yang Store.

Between August and September 2014, the source met with Xu at the Ming Yang Store and the businesswoman gave him $20,000 cash to purchase contraband cigarettes in the Philippines to sell at her store.

Xu allegedly insisted that the source write a check for $20,000 as assurance that he would deliver the contraband cigarettes.

The terms of the deal is that upon delivery of the cigarettes to the store, Xu would give back to the source his $20,000 check.

The last time the source spoke with Xu was on Nov. 20 in which the defendant was inquiring about the delivery of the cigarettes. Xu was allegedly mad about the delay in the delivery of the cigarettes to her store.

Last Monday at 7:56pm, Xu allegedly called the source to meet her at the back of the Ming Yang Store to deliver the contraband cigarettes the following day, Tuesday. During the call, Xu allegedly directed the source to deliver the contraband cigarettes between 11am and 12pm. Xu mentioned that she would return the source’s check upon delivery of the cigarettes.

Customs arrested Xu and also searched the Ming Yang Market to seize the alleged contraband cigarettes.