WSDI_Bootleg_release_12.18.17 Final (1)

FOR IMMEDIATE RELEASE
December 19, 2017
Contact: Steve Patterson
SP@respublicagroup.com
(312) 755-3547
More Modern-Day Bootlegging Uncovered
Chicago, IL – In the wake of yet another investigation uncovering widespread violations of Illinois and Federal
liquor laws through cross-state bootlegging, the Wine and Spirits Distributors of Illinois (WSDI) is calling on
Illinois lawmakers to stand firm and enforce existing state law. The violations are estimated to cost Illinois nearly
$30 million each year in lost tax revenues and put public safety at risk through the sales off un-booked liquor.
Public records allege that the owners of Hammond, Indiana-based Columbia Liquors operated a scheme to help
Illinois stores avoid paying taxes on alcohol. According to a lawsuit filed by the U.S. Attorney’s Office in
Hammond, those store owners sold millions of dollars’ worth of alcohol to Illinois stores from a back-door
register. The scheme is yet another example of retailers bypassing Illinois distributors to smuggle alcohol across
state lines. This not only allows those businesses to evade state taxes; those involved can face up to a Class 4
felony, as well as civil citations.
“The continued brazen disregard for Illinois law by these modern-day bootleggers is putting the health and safety
of Illinois consumers at risk and costing our state millions in much-needed tax revenue,” said Karin Lijana
Matura, Executive Director of WSDI, the trade association that represents alcohol distributors throughout Illinois.
“Any out-of-state retailer may set up shop in Illinois as long as they follow existing state laws and compete fairly.
The issue is that retailers who avoid paying their fair share of taxes expose Illinois residents to alcohol shipments
that can’t be tracked or recalled in the wake of a safety incident.”
Cross-border bootlegging represents only part of the problem. The growing market for online sales represents the
greatest losses in tax revenues for the State of Illinois. While many wineries and internet companies abide by
Illinois law and ship legally into the state, hundreds more disregard these rules and they represent a huge loss of
regulatory authority. That number continues to rise with the increase in online shipping. State controls like these
protects Illinois consumers by regulating a product that, while legal, needs enforcement.
Despite claims that restricting retailers’ interstate shipping of wine unfairly denies consumers access to products
they desire, Wine and Spirits Wholesalers of America President & CEO Craig Wolf noted in a recent interview
that wine sales overall are up because of the Granholm v. Heald decision and that it allows producers to ship but
also says that the three-tier distribution system is legitimate.
Wolf reinforced the tax and safety concerns in the same interview stating that, “when retailers ship out-of-state,
you can’t hold them accountable for paying taxes or checking for I.D.s. The laws now ensure that states can
collect the taxes they are owed.”
“The existing laws do not limit consumers’ ability to purchase wine but rather require wineries to obtain a very
affordable license and pay the same taxes as other producers. It is about protecting Illinois consumers by abiding

y the three-tier system that this industry was established on,” added Matura. “Illinois continues to face budget
issues and it is the responsibility of Illinois lawmakers to uphold state law to ensure Illinois can collect the taxes
that are due and to protect consumer safety.”
About WSDI:
WSDI is a not-for-profit trade association promoting the general welfare of the beverage alcohol industry in Illinois and
encouraging a high standard of ethics and moral responsibility among all persons engaged in the industry. The organization
represents one tier on what is known as the three-tier system, a system established after Prohibition, which ensures fair
business practices among manufacturers, distributors and retailers of alcohol, protecting public safety and the fair collection
of taxes. For more information about the Wine and Spirits Distributors of Illinois, please visit www.wineandspiritsil.org.
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