April 14, 2000
TAX FRAUD CHARGES FILED AGAINST FIVE INDIVIDUALS; RICHMOND HILL CAR DEALER CHARGED WITH STEALING OVER $1 MILLION IN SALES TAX; FOUR OTHERS INCLUDING THREE OTHER CAR DEALERS CHARGED IN SEPARATE TAX CASES.
Queens District Attorney Richard A. Brown joined by New York State Commissioner of Taxation and Finance Arthur J. Roth, Department of Motor Vehicles Commissioner Richard E. Jackson, Jr. and New York City Finance Commissioner Andrew S. Eristoff, announced today the arrest and indictment of the owner of a Richmond Hill used car dealership on charges of stealing over $1 million from New York State by failing to remit sales and income tax to the State on cars that he sold and income that he earned over the last 2½ years. Three additional car dealership owners were charged in separate sales tax cases and one other defendant was arrested in a separate income tax fraud case.
District Attorney Brown said, "With April 15th fast approaching and millions of New Yorkers struggling to file accurate and on-time tax returns, it is galling to note that there are those who seek to defraud the State and, in the process, defraud all of us. Collectively these defendants through various schemes allegedly defrauded the state and city of roughly $2,005,000, a significant sum that could have been well used for any number of valuable public purposes. Hopefully, by these prosecutions the public will be made whole."
Commissioner Richard E. Jackson, Jr. of the New York State Department of Motor Vehicles said, "DMV always cooperates with law enforcement agencies in the investigation of any alleged wrongdoing that affects the people of New York State. In these particular incidents, DMV's Division of Field Investigation provided the initial leads, and six of our investigators participated in today's proceedings involving these very serious offenses."
New York State Commissioner of Taxation and Finance Arthur J. Roth said, "By engaging in tax crimes and literally reaching into the pockets of honest, hardworking New Yorkers, these defendants have shown themselves to be nothing more than common thieves. They deserve to be punished as such."
New York City Finance Commissioner Andrew S. Eristoff said, "These investigations and arrests should put the perpetrators of tax fraud on notice that the Department of Finance will continue to assist the Queens District Attorney's Office in rooting out this corrupt activity."
Defendant Seechand Singh:
District Attorney Brown said that "according to the charges defendant Seechand Singh, 55, of 931 Jefferson Street, Baldwin, N.Y. is the owner and manager of a used car dealership called Six Stars Auto Sales which is located at 133-17 Liberty Avenue in Richmond Hill. Earlier this year the Revenue Crimes Unit of the New York State Department of Taxation and Finance conducted a routine audit of Six Stars Auto Sales and discovered that between September 1996 and February 1999 the defendant had filed paperwork with the N.Y. State Department of Motor Vehicles indicating he had sold 1800 vehicles during the period. Further investigation revealed that although he had collected $1,078,981 in sales tax from used car buyers he had only remitted $76,520 to the State." "In other words," said District Attorney Brown, "the defendant is alleged to owe $1,002,461 in sales taxes that he had collected from buyers. In addition, audits of the defendant's his personal income tax returns for 1996, 1997 (he allegedly failed to file in 1998) indicate that the defendant allegedly owes $71,124 in personal income taxes, for a total of $1,073,585."
The defendant is charged with grand larceny, falsifying business records offering a false instrument for filing and violations of the New York State Tax Law. He faces up to 25 years in prison if convicted of the charges.
In addition to the criminal prosecution District Attorney Brown's Civil Enforcement Unit, which is under the supervision of Assistant District Attorney Communiello, has obtained civil orders of attachment for over $2 million in assets belonging to the defendant.
The investigation was carried out by Investigator Angelo Polito, Auditor Daniel Abbott and Associate Attorney William Gritsavage under the supervision of Director Joseph Brooking of the Revenue Crimes Unit of the New York State Department of Taxation and Finance.
Assistant District Attorney Rosemary Buccheri of the District Attorney's Economic Crimes Bureau which is under the supervision of Assistant District Attorneys Brian J. Mich and John R. Mechman and Diane Peress and the overall supervision of Executive Assistant District Attorney Peter A. Crusco is in charge of the case.
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Defendant Michael Akva
It is alleged that the defendant Michael Akva, 34, who resides at 141-57 72nd Crescent, Flushing, N.Y. and owns The Empire Auto, a used car dealership at 72-12 Queens Boulevard, Woodside, N.Y. failed to remit $135,000 in sales tax to the State from the proceeds of various used car sales. The investigation revealed that during a year's time, from September 1996 to August 1997 the defendant claimed a tax liability of only $18,179. He is charged with grand larceny and other crimes. He faces up to 15 years upon conviction. The investigation was carried out by Investigator Angelo Polito and Auditor Daniel Abbott of the NYS Dept. of Taxation and Finance.
Assistant District Attorney Peri Kadanoff of the Organized Crime and Rackets Bureau which is under the supervision of Assistant District Attorney Gerard Brave is in charge of the case.
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Defendant Offer Ben Moshe
District Attorney Brown said that the defendant Offer Ben Moshe, 45, of 2143 East 17th Street, Brooklyn, owns and operates a used car dealership in Elmhurst at 74-21 Queens Boulevard. Operating under the name Offer Service Inc., it is charged that between September 1996 and August 31, 1997 he collected over $500,000 in taxes from used car buyers and remitted only $11,934 to the State. In addition, it is alleged that this income was not declared on his personal income tax return. He is charged with grand larceny, various tax law violations and offering a false instrument for filing. He faces up to 15 years in prison upon conviction.
The investigation was carried out by Investigator Angelo Polito and Auditor Daniel Abbott of the New York State Department of Taxation and Finance and Sr. Investigator John Cassino of the New York State Police.
Assistant District Attorney Peri Kadanoff of the Organized Crime and Rackets Bureau which is under the supervision of Assistant District Attorney Gerard Brave is in charge of the case.
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Defendant Zvi Yosef
According to the charges brought against Zvi Yosef, 52, who resides at 153-32 75th Avenue, Flushing, is the owner of Import Auto Wholesale, Inc., a used car dealership at 72-12 Queens Boulevard in Elmhurst. He is accused of stealing over $340,000 in sales taxes on hundreds of cars that he sold to consumers from whom he collected the taxes between May 31, 1995 and May 31, 1996. It is also alleged that he did not report this income on his personal income tax return. He is charged with grand larceny, among other crimes and faces a 15 year penalty.
This investigation was also carried out by Investigator Angelo Polito and Auditor Daniel Abbott of the New York State Department of Taxation and Finance and Sr. Investigator John Cassino. The defendant is not yet in custody.
Assistant District Attorney Peri Kadanoff of the Organized Crime and Rackets Bureau which is under the supervision of Assistant District Attorney Gerard Brave is in charge of the case.
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Defendant Joseph Vasquez:
District Attorney Brown said that defendant Joseph Vasquez is a tax preparer who does business under the name Corona Financial Services which is located at 41-04 102nd Street, Corona, New York. It is alleged that the defendant advised an undercover investigator posing as a client to under report the gross receipts she received and inflate her expenses. The defendant then allegedly prepared a false 1997 tax return for the undercover investigator which reduced her tax liability from $14,416 to $314. The defendant is charged with grand larceny, falsifying business records and offering a false instrument for filing. He faces up to 7 years upon conviction.
District Attorney Brown noted that several months ago a search warrant prepared by his office's Economic Crime Bureau was executed at the defendants place of business and that it resulted in the seizure of hundreds of tax preparation records which auditors of the New York City Department of Finance are now examining in the continuing investigation.
The Vasquez investigation was conducted by Investigators Marta Rivera and George Tsatsaronis under the direction of Thomas Stanton, Director, and Bruce Kato, Assistant Commissioner, all with The City of New York Department of Finance and with the assistance of investigators from the Queens District Attorney Detective Bureau under the supervision of Lt. Al Velardi and under the overall supervision of Chief Edward Brady and Deputy Chief Lawrence Festa. Assistant District Attorney Rosemary Buccheri is in charge of the case.
It should be noted that arrests and indictments are is merely accusations and that a defendant is presumed innocent until proven guilty.