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A Rye man who formerly owned a New Rochelle liquor store was charged with fraud by The Westchester County District Attorneys office and the State Department of Taxation. Steven Malkin, of Rye, was arrested and charged with tax fraud earlier this week, according to Westchester District Attorney Janet DiFiore and Finance Commissioner Thomas H. Mattox.
Malkin was the owner of Old Tyme Wine & Spirits, Inc., at 422 Pelham Avenue in New Rochelle from January 1st, 2006 until March 23 of this year. During that time, Malkin is alleged to have willfully failed to pay over $380,000 in sales tax to New York State.
But Malkin's alleged crimes went beyond his liquor store business, it was alleged. During the same period, Malkin was charged with running an online scheme that illegally assessed and collected phony sales tax on sales at an Internet website that prepares paperwork and other services in uncontested New York divorce cases. None of that money was ever paid to New York State, the complaint alleged.
The grand total amount of larceny tallied to $380,884.46. Warrants were issued by the NYS Department of Taxation and Finance on April 14, 2011 at the Pelham liquor store location and Martins residence. Records showed that Malkin failed to report more than $4.5 million in sales on his quarterly tax returns.
He was released on his own recognizance and is due back in New Rochelle City Court on June 16th, 2011. Westchester Assistant District Attorney Nicole Gamble of the Economic Crimes Bureau will be prosecuting the case.
A summary of the charges is below:
Steven Malkin, 53, was charges with six felony charges:
(1) one count of Grand Larceny in the Second Degree, a class C Felony,
(1) one count of Criminal Tax Fraud in the Second Degree, a class C Felony,
(1) one count of Offering a False Instrument for Filing, a class E Felony,
(2) two counts of Criminal Tax Fraud in the Fourth Degree, a class E Felonies,
(1) one count of Scheme to Defraud in the First Degree, a class E Felony.
His business, Old Tyme Wine & Spirits, Inc. at 422 Pelham Avenue in New Rochelle was charged with the following:
(1) one count of Grand Larcey in the Second Degree, a class C Felony
(1) one count of Criminal Tax Fraud in the Second Degree, a class C Felony
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