The announcement comes just as Apple celebrates the release of the iPhone 4, which CEO Steve Jobs called "the biggest leap since the original iPhone." How much of a damper the investigation will put on Apple`s spirits remains to be seen.

The unique allegations originated last month, when New York State Assemblywoman Grace Meng wrote in a letter to Apple that some of her constituents had been getting intrusive questions from company employees when they tried to buy an iPad. Meng represents Flushing, an especially diverse section of Queens that features a large Chinese population.

"One person was asked why they wanted one since their English was not so good," Meng`s letter read. "I want to get an explanation."

Some consumers were asked for their passports or simply told that they couldn`t buy an iPad, according to a report in the New York Daily News.

Smuggling has been a major concern of Apple`s since it introduced the iPad in April. An article in the Guangzhou Daily reported that over 300 travelers have carried an iPad into China, and that nearly 60 of those devices had likely been smuggled in. The paper reported that one individual tried to bring seven iPads into the country.

The device is so sought after in China that a rip-off -- the iPed -- was released in Shenzhen last month. The counterfeit, which at $150 is much easier on the wallet than the $500 real thing, runs Android and is slightly heavier than the iPad. Hong Kong is set to release the bona fide iPad on July 1.

Officials from Cuomo`s Civil Rights Bureau have questioned employees at Manhattan`s two major Apple stores, on Prince Street in Soho and on West 14th Street in the Meatpacking District. Reports are that Apple has been cooperating with the investigation.

"We contacted Apple and they have been very cooperative during our inquiry," Cuomo spokesman Richard Bamberger said in an email to Politico. "The matter is still ongoing but we have every expectation that it will be resolved expeditiously and fairly."

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