Two more sentenced in connection with Blue Stilly case
July 12, 2010 · Updated 2:00 PM
SEATTLE — Two individuals involved in the Blue Stilly Smoke Shop cigarette case have been sentenced in U.S. District Court.
Rick Conn, a cigarette broker based in California, was sentenced to 20 months in prison, while Carol M. Silverman, who owned a cigarette distribution business in Oregon, was sentenced to 12 months and a day in prison on Friday, July 9.
Additionally, Conn and Silverman will each have to serve three years of supervised release and repay a combined $38 million in restitution, according to the U.S. District Attorney's Office.
Conn and Silverman were indicted in September 2009 in connection with the sales of untaxed cigarettes to the smoke shop located on the Stillaguamish Tribe of Indians' reservation near Arlington.
According to the attorney's office, Conn admitted to brokering a cigarette deal between Cowlitz Candy and Tobacco and Blue Stilly in which the former sold contraband cigarettes to the latter.
Along with Silverman and her then-husband and co-defendant Jay Silverman, Conn conspired with both businesses to continue selling the illegal cigarettes even after the Washington State Liquor Control Board instructed those involved to stop.
Conspirators created false invoices and routed cigarettes through Silverman's warehouse in Clackamas to disguise that they were continuing to sell to Blue Stilly, according to the District Attorney's office.
Silverman, co-owner of the warehouse, and Matthew Cunningham, who created the false invoices, have pleaded guilty and will be sentenced later this year.
Cowlitz owner Robert Stuber was sentenced to nine months in prison for his role in the case, and former Blue Stilly owners Edward L. Goodridge Sr., 60, Edward Goodridge Jr., 33, and Sara L. Schroedl, 40, were all sentenced to prison terms and supervised release in 2008.
The U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, the IRS Criminal Investigations and the Washington State Liquor Control Board investigated the case.