Fraud Cases in Sales Tax

Here, we will attempt to post links to the cases of fraud published throughout the country.  We receive most of our fraud notices in NY, but we’ll try to keep up with the rest of the states as they become known.

2.3.10 – Rockland CO, NY – business partner files false sales tax returns and steals over $285K.  Ratted out by another tax evader. 

1.22.10 Albany, NY Bar owner (the Envy Lounge) steals over $190K in sales taxes in less than 3 years.  Could see up to 15 years. 

1.7.10 Albany County, NY, New Scotland Avenue bar owner collected tax from customers and never remitted i.  Essentially stealing over $50K from customers and the state

12.30.09 Farmingdale, ImageQuest Business Owner steals sales taxes from customers and NY state worth over $68K.

12.18.09 North Tonawanta entrepreneur w/film-making and tree-trimming business steals $70K over 7 years before being caught.  He never registered to collect taxes, but yet he collected the tax from customers.  Wow.

11.18.09 (Update)  Sentencing:  5 years probation, 100 hrs. community service and repayment of over $230K in stole taxes.  8.27.09 – Buffalo, NY – Refrigeration Equipment Service/Retailer pleads guilty to stolen sales taxes and writes check for over $46K. (NY Press Release)

10.14.09 – Rochester, NY Car Salesman sentenced for under-reporting and stealing NY sales taxes. 

10.7.09 – Canandaigua, NY – Restaurant owner under reports Gross Sales by $3.5M and steals almost $250K in sales tax.

10.2.09  – Nassau County, NY – Jewelry Store pleads guilty to stealing sales taxes. 

9.30.09 – New York State – Nabs liquor store owner for purchasing alcohol without tax paid to the tune of $209,000.

9.22.09 – West Henrietta, NY – Landscaper keeps 50K in sales taxes to himself. 

9.16.09 – NY, Nassau County – Gas Station/Garage owner steals near $800K in sales taxes. 

9.11.09 – Erie County, North Tonawanda, NY – Used Car Salesman gets probation for stealing over $100K in sales tax.

7.14.09 – (updated sentencing 2.18.10) Buffalo, NY – Restaurant Owner pleads guilty for stealing $50K in sales taxes over 4 years.

7.14.09  And another Restaurant Owner in Manhattan, NY steals sales and other taxes.

7.1.09 – Allegany County – Restaurant Owner:  over $46K in stolen sales tax in 3 years.

6.4.09 – Brooklyn, NY – Jewelry Store owners underreport $1.3M sales tax (operation Bracelet).

5.20.09 – Brockport, NY – Use Car Dealer sentenced to Sunday work release and 5 years probation. 

5.14.09 – Clarence, NY – Erie County. Use Car Dealer Sales Tax Fraud – just over 7K in 6 months.  Really, was it worth it? 

5.8.09 – Bolivar, TN - Business owner Pleads Guilty to Sales tax evasion charges.

5.7.09 – Clarksville, TN - Business owner arrested for sales tax evasion.

4.27.09 – Sicklerville, NJ  Towing and Auto repair business fails to remit collected sales tax over 16 years.

4.27.09 – Fayetteville, AR, Pizzeria forced to shut down after not paying over sales tax.  This might not be fraud, per se, but the restaurant is in some hot water for at least not turing over sales taxes properly 3X in 2 years. 

4.15.09 – Canandaigua, Ontario County, NY restaurant owner steals $250K in sales taxes.  7.22.09 – Pleads Guilty (looking at 1-3 years TBD in Oct).

4.9.09 – Pelham Manor, NY – Deli owner stole over $500K in sales taxes amongst other tax fraud. 

4.1.09 (6.16.09 UPDATED) - Syracuse, NY – Husband/Wife sentenced to 6 years each.  Fast Food Restaurant owners and Flower shop owners steal sales tax.

3.31.09 – Nashville, TN – Interior Designer indicted for stealing sales taxes.

3.31.09 – Rochester, NY:  Use Car Dealer

3.25.09 – NY:  Seven accountants charged.