A Lahaina woman pleaded guilty in a federal court in Seattle last week to charges of defrauding the state of Washington of $25 million in cigarette taxes, the Maui News reported yesterday.

According to Daniel Wardlaw, a special agent and public information officer of the Internal Revenue Service in Seattle, three members of the Stilliguamish Tribe and the spouse of a tribal member pleaded guilty of conspiracy to traffic in contraband cigarettes and engaging in monetary transactions involving criminal proceeds in connection with a scheme to sell contraband cigarettes without paying the state tax.

They were Edward Leverne Goodridge Sr., 60, Linda Loy Goodridge, 59, and their son, Edward Goodridge Jr., 33, all of Arlington, Wash., and a cousin, Sara Lee Schroedl, 40, of Lahaina.

U.S. District Judge James Robart scheduled sentencing for March 16. Under the terms of a plea agreement, the government agreed to recommend no more than 18 months in prison for each of the defendants.

The defendants agreed to forfeit more than 5.3 million contraband cigarettes and approximately $1 million in cash. They also agreed to pay restitution to the state of $25.7 million.

The four admitted that between March 2003 and May 2007, they conspired to sell contraband cigarettes, with no state tax stamp.

In a search in May 2007 of the Goodridge business, Blue Stilly, and their homes, investigators found records of the illegal sales, more than 3.5 million contraband cigarettes and more than $46,000 in cash.

According to news reports at the time of the 2007 raid, the Blue Stilly Smoke Shop in Arlington was on tribal land but was privately owned. Goodridge Sr. was a former chairman of the Stilliguamish, and Goodridge Jr. was then executive and manager of the tribe's casino.

Investigators said that Blue Stilly had illegally sold more than 1.8 million cartons of cigarettes for more than $55 million. The conspirators profited by $15 million. A carton of smokes at Blue Stilly sold for $25 less than cartons at nearby grocery stores.

"Washington's most vulnerable citizens are among those victimized when the state cigarette tax is not paid," said Kenneth Hines, the IRS special agent in charge of the Pacific-Northwest.

The state tax supports healthcare, education, and programs to stop youth violence and protect water quality.