Sun Sims, an Anchorage business owner, pleaded guilty Friday for her part in a three-year fraud scheme.
Sims, 52, and her business partner owned and managed one smoke shop located in the municipality of Anchorage, Up in Smoke, and two shops outside the municipality.
According to a release from the U.S. Attorney’s Office for the District of Alaska, because the two owned stores outside of Anchorage, they could legally buy tax-exempt cigarettes from wholesale distributors within the municipality to sell outside of muni limits.
But the release states that between 2009 and 2012, Sims and her partner sold the tax-exempt cigarettes within municipality limits to increase their own profits.
In addition, Sims and her partner sold those tax-exempt cigarettes to other retailers within Anchorage for a fee. They then collected payments from those retailers and converted the money into cashier’s checks that appeared to be purchased from one of their stores.
As part of the plea agreement, Sims agreed to forfeit over $1 million. She could serve up to 40 years in prison, according to the release.