Prosecutors say that between 2006 and 2009, Zenica businessman Fahrudin Cago was one of the leading distributors of cigarettes in the country via Cago Komerc, a family company. Prosecutors say he colluded with a number of people who bought his cigarettes in the tax evasion scheme.
According to the prosecutors, Cago bought cigarettes in bulk from the black market and resold them to customers for cash, while forging receipts showing lower cigarette prices to avoid tax.
Cago and his employees were rounded up in a state police crackdown in October 2009. All defendants received prison sentences in July 2014, but both sides successfully appealed.
On Dec. 4, the defendants received their second instance verdicts in the case. Cago was found guilty of tax evasion and money laundering and received 10 years in prison. His associates were convicted of tax evasion and sentenced as follows: Smail Mujcinovic, seven years; Rasmin Alajbegovic, two and a half years; Nermin Mujanovic, 18 months; and Enes Pasalic and Mersiha Kvrgic, one year each.
The court also ordered the seizure ofprofits: 1,040.814 Bosnian marks (US$ 578,149) from Cago; 182,176 BAM (US$ 101,195) from Alajbegovic; and 41,794 BAM (US$ 23,215) from Mujanovic.
The companies involved were also ordered to repay illegally obtained proceeds: Cago Komerc, 2,500,000 BAM (US$ 1,388,696); AD-Nercomerc, 110,000 BAM (US$ 61,102); and Belmin Komerc, 50,000 BAM (US$ 27,773).
