A tax preparer in Northern Westchester with a previous conviction for tax fraud is facing new charges after allegedly engaging in an elaborate scheme “constituting a systematic ongoing course of conduct.”
Yorktown Heights resident Steve Sabba, 61, has been charged in an eight-count indictment with tax fraud and other felonies following a lengthy investigation by investigators by the New York State Department of Taxation and Finance and the Westchester County District Attorney’s Office.
Sabba and his company, TaxPro Financial Network, were arraigned this week in Westchester County Court.
According to Westchester County District Attorney Anthony Scarpino, Jr., Sabba defrauded the state from February 2012 through March this year. Sabba allegedly sold a tax preparation business in 2009, and subsequently failed to report the income from the sale in the following years.
He also allegedly concealed taxable income paid to him by clients and stole the identities of his clients to procure credit cards. He then used those credit cards for personal expenses.
Sabba allegedly used corporate accounts to pay the bills on the fraudulent cards, failing to report the income he used to pay those bills, and did not pay taxes on the income. He was arrested on March 8, 2016 by the New York State Department of Taxation and Finance. He was indicted on multiple charges on Monday.
Scarpino noted that Sabba previously was convicted of tax fraud in 2009, when he pleaded guilty to filing a false state personal tax return.
As part of his plea agreement, Sabba was told to dissolve his business and was no longer permitted to “electronically file tax returns under personal identification numbers that he previously obtained or used.”
Sabba has been charged with individual counts of scheme to defraud, criminal tax fraud and offering a false instrument for filing. He was also charged with two counts of criminal tax fraud and four counts of identity theft, all felonies. TaxPro Financial Network, Inc. was named in one count: criminal tax fraud. Sappa is due in court on Aug. 21.
“The flagrant nature of the scheme alleged in this indictment—a deliberate attempt to conceal income and use the stolen identities of unsuspecting clients for personal gain—is especially disturbing given the defendant’s previous conviction for tax fraud,” acting New York State Commissioner of Taxation and Finance Nonie Manion stated.
“Anyone who steals money from the State of New York, steals money from all of us,” Scarpino added. “We are proud of our collaboration with New York State Department of Taxation and Finance in bringing to light this serious ongoing tax fraud and we will prosecute the perpetrator to the fullest to see justice done for the residents of Westchester and New York State.”
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