“Mr. Tobacco” sues a journalist for defamation and claims $2 million

The businessman Pablo Oteroknown as “Mr. Tobacco”filed a lawsuit against the journalist Andres Sanguinetti, claiming two million dollars in damages, in a move that seeks to put a stop to the articles that expose its actions to maintain its privileged position in the market.

Otero, owner of Sarandí Tobacco Company, accuses Sanguinetti of defamation for publishing articles that, according to the businessman, contain false information and have seriously damaged his reputation.

A hearing between the parties was held last week, but no agreement was reached, which led to further legal proceedings.

The controversy arose from a series of newspaper reports in which Sanguinetti linked Otero to business practices through which he evaded the tobacco tax and managed to sell his products at a lower price than the competition. This allowed him to control more than 40% of the market and consolidate a dominant position.

The article on which the businessman bases his claim is entitled “A ‘dubious’ tobacco company already controls 45% of the local cigarette market.”

In response, Otero sued the journalist, claiming that the reports are unfounded and have caused irreparable damage to his public image and his business. As a result, he is seeking $2 million in compensation. “Mr. Tobacco” claims that the article generated “moral, economic, reputational and financial damages” equivalent to the amount of money demanded from the press worker.

Last June the Supreme Court of Justice forced Otero’s company to pay the tribute. And that is why the AFIP claims a sum in weights that for that month already exceeded the equivalent of US$400 million at the value of the US currency at that time.

The privileges of “Mr. Tobacco”

Otero’s company has long been looked at askance because it has precautionary measures to avoid paying the minimum internal tax and because it achieved in the administrative litigation court that the regulations that allow the registration of tobacco movements internally in Argentina were not applied to it.

The entrepreneur owns at least 19 companies worldwide: companies incorporated in the United States, Brazil, Panama and Saint Kitts and Nevis. Many of these companies have the participation of other members of the Otero family, such as Adrián and Silvia Alejandra, as well as Guadalupe Saldungaray, who is believed to be his partner.

Otero also faces a complaint from Luis Eugenio Guinlepresident of the Argentine National Chamber of Tobacco Companies, for aggravated bribery, failure to fulfill the duties of a public official, tax evasion and money laundering.