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Bank to Refrain from Processing Online Tobacco Sales

A California bank has agreed to stop processing payments for illegal online cigarette sales as part of a settlement with three state attorneys general.

A California bank has agreed to stop processing payments for illegal online cigarette sales as part of a settlement with three state attorneys general.

First Regional Bank signed the agreement last week with Edmund G. Brown Jr. of California, Andrew Cuomo of New York and Lawrence G. Wasden of Idaho.

A probe had revealed that the Los Angeles-based bank had processed sales from online tobacco sellers throughout the U.S., including one of the largest, Scott Maybee, according to Brown’s office.

California sued Scott Maybee in June for violating state laws that would prevent minors from purchasing cigarettes online, AG Brown’s staff continued.

These laws require that the seller call the buyer after 5 p.m. to confirm the sale, impose a two-carton minimum purchase and provide adequate purchase information to credit card issuers so that the words “Tobacco Products” can be printed on the receipt.

In addition, California alleged that Scott Maybee sold cigarettes that were not “fire-safe,” Brown’s office charged.

According to the agreement, First Regional Bank terminated all tobacco selling-merchants in March. The bank did not admit or deny the AGs’ findings.

In addition to the prohibition, First Regional agreed to pay $60,000 in civil penalties, fees and costs, train employees on tobacco policy requirements, publish its tobacco policy on its Web site and conduct a background check on potential clients.

“Stopping the illegal sale of cigarettes, especially to minors, is a major step in protecting public health,” Brown said in a statement.

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