Court drops smuggling charges against RNDC

An indictment accusing US-based drinks distributor Republic National Distributing Company of smuggling has been thrown out of court.

Republic National Distributing Company will no longer face federal smuggling charges

In May this year, Republic National Distributing Company – the second largest drinks distribution firm in the US – and three of its employees were named by a federal grand jury in charges arising from an alleged US$9 million scheme to defraud the state and city of New York, along with registered New York liquor wholesalers.

The indictment alleged that the defendants transferred alcohol from Maryland, where the state excise was approximately US$1.50 per gallon, to New York, where state excise tax is much higher at approximately US$7.44 per gallon, for retail sale.

Any wholesaler transferring or distributing liquor for retail sale in Maryland or New York is required to register with the state. While RNDC is registered in Maryland, it is not registered as a distributor in New York, the indictment said.

However, on Friday 28 October, The US District Court for the District of Maryland issued an order dismissing, in full, the indictment naming RNDC and three emplyees – Eugene Gerzsenyi, Jason Lockerman and Lisa Robbins.

The motion was dismissed on the motion of the US Attorney. The court had previously ordered that US$50 million seized from RNDC should be returned to the company

RNDC has always protested its innocence.

“Republic and our three employees violated no law and should never have been charged,” said RNDC CEO Tom Cole. “We’re certainly happy that the US Attorney in Maryland realised that fact – before the needless expenditure of more time and resources – and decided to drop the case.

“This is a good day for Republic and we are grateful to all of our customers, suppliers and employees nationwide who have stood by us through this challenging time.”