A plea agreement for the former owners of a smokeshop at Frank's Landing's Indian Community in Washington was announced on Wednesday.

Henry and Alison Gottfriedson pleaded guilty to conspiracy and avoiding tax payments. They agreed to pay about $9.2 million in taxes and forfeit more than $1.5 million in cash.

"The trafficking of contraband cigarettes and the structuring of currency transactions to avoid paying Washington state cigarette taxes hurt vital state programs like health care, water quality and preventing youth violence," said Kenneth J. Hines, the IRS Special Agent in Charge for Washington, in a statement.

Federal and state agents raided the Frank's Landing Indian Discount Tobacco in May 2007 as part of “Operation Chainsmoker." It reopened after Frank's Landing, a self-governing Indian community, entered into an agreement with the Squaxin Island Tribe to sell cigarettes.

The Nisqually Tribe claims that is has jurisdiction over Frank’s Landing's and is seeking to close the smokeshop.

Get the Story:
Smoke shop owners plead guilty (The Tacoma News Tribune 8/14)
WA couple pleads guilty in Indian cigarette case (AP 8/13)

Related Stories:
Owners of Frank's Landing smokeshop plead guilty (7/4)
Judge refuses to close Frank's Landing smoke shop (5/9)
Editorial: Incursion on Nisqually Tribe's sovereignty (4/29)
Nisqually Tribe seeks control of Frank's Landing (4/28)