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Tax Evasion

Business
Ex-Long Island Auto Biz Owner Admits Dodging $1.3M In Taxes Ex-Long Island Auto Biz Owner Admits Dodging $1.3M In Taxes
Ex-Long Island Auto Biz Owner Admits Dodging $1.3M In Taxes The former owner of several auto businesses on Long Island admitted to dodging more than $1 million in state taxes. Timothy Kjaer, age 49, formerly of Shoreham, pleaded guilty to grand larceny in Suffolk County Court on Thursday, Sept. 12. According to prosecutors, Kjaer failed to submit dozens of sales tax returns and falsified others that significantly underreported the taxable sales of several of his Suffolk County businesses between June 2011 and November 2021. In all, he failed to report more than $16.1 million in order to steal over $1.3 million in sales tax that was collected on beh…

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by Michael Mashburn
News
$2M Scheme: Westchester Accounting Firm Partners Admit To Tax Fraud Conspiracy $2M Scheme: Westchester Accounting Firm Partners Admit To Tax Fraud Conspiracy
$2M Scheme: Westchester Accounting Firm Partners Admit To Tax Fraud Conspiracy Two New York accounting firm partners have pleaded guilty to a multi-million dollar tax evasion scheme.  Click here for a new, updated story - Update: Scarsdale-Based Accountant Nabbed In Tax Fraud Scheme Was Longtime Firefighter Westchester County resident George Sanossian, age 70, of Scarsdale, and New Jersey resident Jack Sardis, age 66, of Englewood Cliffs, both certified public accountants, admitted to conspiracy to defraud the IRS by scheming with clients to reduce tax liabilities through a shell company, leading to over $2 million in unreported cash transactions.  The tw…

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by Joe Lombardi
News
‘Drug Dealer In White Coat’: NY Pharmacist Admits Illegally Distributing Opioids ‘Drug Dealer In White Coat’: NY Pharmacist Admits Illegally Distributing Opioids
‘Drug Dealer In White Coat’: NY Pharmacist Admits Illegally Distributing Opioids A New York pharmacist is facing decades in federal prison after admitting that he made hundreds of thousands of dollars by illegally distributing opioid medications. Long Island resident Daniel Russo, age 44, of the village of Cedarhurst in Nassau County, pleaded guilty to multiple charges, including conspiring to distribute and possess oxycodone, in federal court in Brooklyn on Friday, Feb. 17. Federal prosecutors said Russo, who owned and operated Russo’s Pharmacy in Far Rockaway, Queens, conspired with other medical professionals and employees to fill fraudulent prescriptions for oxycod…

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by Michael Mashburn
News
Sex Cult Leader At College In Westchester Draws 60-Year Sentence Sex Cult Leader At College In Westchester Draws 60-Year Sentence
Sex Cult Leader At College In Westchester Draws 60-Year Sentence A man who put a group of college students through sexual, psychological, and physical abuse after moving into his daughter's dorm room in Westchester County will spend the rest of his life in prison.  Earlier Report - Sarah Lawrence Sex Cult Leader In Bronxville Found Guilty On All Charges Larry Ray, also known as Lawrence Grecco, was sentenced to 60 years in prison on Friday, Jan. 20 for leading a sex cult out of Sarah Lawrence College located near the border of Bronxville and Yonkers, according to Damian Williams, the US Attorney for the Southern District of New York. …

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by Ben Crnic
News
Westchester Man, Partner Sentenced For Roles In $1M Ponzi Scheme Westchester Man, Partner Sentenced For Roles In $1M Ponzi Scheme
Westchester Man, Partner Sentenced For Roles In $1M Ponzi Scheme A Westchester County man and his business partner have been sentenced for their roles in a nearly decade-long $1-million Ponzi scheme. White Plains resident James Doyle, age 74, and Carl Carro, age 61, of Walton, Delaware, were convicted of defrauding investors in New York and throughout the nation. On Thursday, Jan. 12, Carro was sentenced to four to eight years in prison, and Doyle was sentenced to five years probation, New York Attorney General Letitia James announced. As part of their respective sentences, Carro and Doyle agreed to pay a total of more than $1 million in judgments …

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by Joe Lombardi
News
NY Businesswoman Convicted Of Obstructing IRS, Filing False Tax Returns NY Businesswoman Convicted Of Obstructing IRS, Filing False Tax Returns
NY Businesswoman Convicted Of Obstructing IRS, Filing False Tax Returns A New York businesswoman is facing federal prison time after being convicted of obstructing the IRS and filing false tax returns. Long Island resident Lorraine Pilitz, age 64, of Merrick, was found guilty on all five counts against her by a federal jury in Central Islip Wednesday, Nov. 9, following a two-week trial. Federal prosecutors said between 2011 and 2013, Pilitz, who owned several automotive businesses on Long Island, regularly structured cash deposits in a way that allowed her to avoid filing financial reports that are required for all transactions over $10,000. The scheme resulte…

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by Michael Mashburn
News
Ex-Owner Of NY Commercial Check Cashing Companies Sentenced For $9.5M Fraud Scheme Ex-Owner Of NY Commercial Check Cashing Companies Sentenced For $9.5M Fraud Scheme
Ex-Owner Of NY Commercial Check Cashing Companies Sentenced For $9.5M Fraud Scheme The former owner of several check cashing businesses in New York is heading to federal prison after admitting to a multimillion-dollar fraud scheme. Long Island resident John Drago, age 58, of Central Islip, was sentenced to four years behind bars Friday, Oct. 21, in federal court in Central Islip. It followed his September 2021 guilty plea to fraud charges, in which he admitted to illegally structuring financial transactions and evading payroll taxes at several of his Long Island businesses. Federal prosecutors said between January 2010 and October 2013, Drago told employees to cash multi…

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by Michael Mashburn
News
Ex-Hudson Valley Bagel Shop Owner Sentenced For $2M Scam Ex-Hudson Valley Bagel Shop Owner Sentenced For $2M Scam
Ex-Hudson Valley Bagel Shop Owner Sentenced For $2M Scam A former Hudson Valley resident is heading to federal prison for defrauding prospective franchisees of his bagel company. Joseph Smith, age 57, formerly of Fishkill in Dutchess County, was sentenced to three and a half years behind bars after pleading guilty in February 2022 to charges of conspiracy to commit wire fraud and tax evasion. Federal prosecutors said between 2014 and 2016, Smith sold more than 160 franchises of his company, New York Bagel Enterprises Inc., to individuals in Pennsylvania and other states. The problem, prosecutors said, was that Smith misled operators by guarantee…

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by Michael Mashburn
News
Sarah Lawrence Sex Cult Leader In Westchester Found Guilty On All Charges Sarah Lawrence Sex Cult Leader In Westchester Found Guilty On All Charges
Sarah Lawrence Sex Cult Leader In Westchester Found Guilty On All Charges Larry Ray, the leader of a sex cult run out of his daughter's dorm room at Sarah Lawrence College in Westchester, will face life in prison after being found guilty by a jury of sexually exploiting and trafficking girls. Ray, now 62 years old following multiple delays in his trial and prosecution, was found guilty of 15 counts that include racketeering, sex trafficking, conspiracy, forced labor, extortion, tax evasion, and other crimes in relation to his scheme. Related story - DOJ Accidentally Publishes List Of Alleged Clients In Sarah Lawrence Case It reportedly took the jury le…

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by Zak Failla
News
Gambino Family Captain From Westchester Sentenced For Racketeering, Ordered To Pay $1M Gambino Family Captain From Westchester Sentenced For Racketeering, Ordered To Pay $1M
Gambino Family Captain From Westchester Sentenced For Racketeering, Ordered To Pay $1M A high-ranking member of the Gambino organized crime family of La Cosa Nostra living lavishly in Westchester will spend time behind bars and pay a million dollars for his role in a racketeering conspiracy. Scarsdale resident Andrew Campos, age 51, was sentenced in federal court to 37 months in prison for the conspiracy. The court also ordered him to pay $1 million in restitution and a $15,000 fine. In January 2021, Campos pleaded guilty and admitted to participating in various acts of wire fraud and money laundering. US Attorney Breon Peace said that Campos and his co-conspirators carried …

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by Zak Failla
News
Westchester Contractor Admits To $1.5M Tax Evasion Scheme Westchester Contractor Admits To $1.5M Tax Evasion Scheme
Westchester Contractor Admits To $1.5M Tax Evasion Scheme A Westchester County contractor pleaded guilty to charges related to his role in a scheme to avoid paying federal income taxes and conceal more than $1.5 million in income from his business. Mario Nunes, age 59, of Yonkers, pleaded guilty to tax evasion and filing false federal income tax returns on Tuesday, Jan. 11, according to Damian Williams, the United States Attorney for the Southern District of New York. “As he admitted in court, the defendant engaged in a scheme to evade paying federal income taxes for years, including by concealing business income, making false statements to the IR…

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by Nicole Valinote
News
NY Doctor Claimed More Than $1 Million In Fraudulent Tax Deductions, Feds Say NY Doctor Claimed More Than $1 Million In Fraudulent Tax Deductions, Feds Say
NY Doctor Claimed More Than $1 Million In Fraudulent Tax Deductions, Feds Say A New York doctor has admitted to tax evasion after federal authorities say he claimed more than $1 million in fraudulent tax deductions. Long Island resident Jordan Sudberg pleaded guilty on Tuesday, Nov. 23 to tax evasion for the calendar years 2015 through 2017, in connection with false deductions from a scheme involving his issuance of hundreds of business checks falsely purporting to be payments for business services, which he provided in exchange for cash to a black market money exchange network. As part of his plea, Sudberg agreed to pay $551,660 in restitution to the Internal Reven…

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by Joe Lombardi
Politics
Trump Organization, CFO Charged With 15 Felonies For Alleged Years-Long Tax Scheme Trump Organization, CFO Charged With 15 Felonies For Alleged Years-Long Tax Scheme
Trump Organization, CFO Charged With 15 Felonies For Alleged Years-Long Tax Scheme The Trump Organization and its longtime CFO Allen Weisselberg have been charged with 15 felony counts in an effort to evade taxes over the course of 15 years, according to a newly unsealed indictment released in federal court. Weisselberg, who is accused of evading nearly $2 million in taxes, surrendered to Manhattan DA Cyrus Vance Jr. on Thursday, July 1, and pleaded not guilty to felony charges that include criminal tax fraud, conspiracy, and falsifying business records. He was released following the court appearance, though his passport had to be surrendered to the court. The charges rep…

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by Zak Failla
News
NY Prosecutors Inform Trump Organization It Could Face Criminal Charges In Days NY Prosecutors Inform Trump Organization It Could Face Criminal Charges In Days
NY Prosecutors Inform Trump Organization It Could Face Criminal Charges In Days The Manhattan District Attorney’s Office has informed lawyers for the Trump Organization that it could be facing criminal charges as soon as next week. According to reports, charges stemming from allegations of tax evasion over compensation paid out to top executives could be filed as soon as Monday, June 28. Allen Weisselberg, the Trump Organization CFO could also face charges next week as he faces scrutiny for benefits he received, including a company-funded apartment and car. Attorney Ron Fischetti said that lawyers for the Trump Organization met with prosecutors on Thursday, June 24. …

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by Zak Failla
Politics
NY AG Adds 'Criminal Capacity' To Trump Investigation, With Westchester Estate Part Of Probe NY AG Adds 'Criminal Capacity' To Trump Investigation, With Westchester Estate Part Of Probe
NY AG Adds 'Criminal Capacity' To Trump Investigation, With Westchester Estate Part Of Probe New York Attorney General Letitia James has joined the Manhattan District Attorney’s Office’s investigation into the Trump Organization, now bringing a criminal element to the case, the AG's office announced. James said that her office is venturing into the investigation into the former president’s organization, which has been under a civil probe since 2019. Now, the AG is saying that they are now investigating criminal components. “We have informed the Trump Organization that our investigation into the organization is no longer purely civil in nature," James' spokesman Fabien Levy sai…

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by Zak Failla
News
Nationally Known Westchester Restaurant Owner Sentenced For Not Paying Taxes Nationally Known Westchester Restaurant Owner Sentenced For Not Paying Taxes
Nationally Known Westchester Restaurant Owner Sentenced For Not Paying Taxes A nationally known celebrity chef known as “Lord of the Pies” who owns restaurants in Westchester and Fairfield counties will spend time behind bars after admitting to not paying taxes. Bruno DiFabio, age 51, of Ridgefield, was sentenced on Thursday, May 6 to 30 days in prison, followed by three years of supervised release after pleading guilty to a federal tax offense in 2018. Specifically, DiFabio pleaded guilty to one count of conspiracy to file false income tax returns and payroll tax returns.  Currently, DiFabio has ownership interests in several pizza restaurants in Connecticut …

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by Zak Failla
News
Long Island Company Fined $4.25M For Evading Taxes Long Island Company Fined $4.25M For Evading Taxes
Long Island Company Fined $4.25M For Evading Taxes A Long Island company has reached a multi-million settlement with the New York State Attorney General’s Office for evading taxes over the course of more than a decade, despite being repeatedly warned. New York Attorney General Letitia James announced on Monday, April 5 that she has secured $4.25 million from Nassau County-based Service Station Vending Equipment (SVEE), as well as owner William McCabe, for "knowingly failing to pay sales tax due on the sales of air inflation services, as well as engaged in fraudulent tax avoidance schemes by underreporting sales and paying workers off the bo…

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by Zak Failla
News
Rapper DMX Hospitalized In Westchester In Grave Condition Rapper DMX Hospitalized In Westchester In Grave Condition
Rapper DMX Hospitalized In Westchester In Grave Condition The rapper DMX is hospitalized in his native New York in Westchester County in grave condition, according to a report by TMZ. DMX, age 50, whose birth name is Earl Simmons, suffered an overdose around 11 p.m. Friday, April 2, which led to a heart attack, according to TMZ. He is hospitalized in the critical care unit in White Plains, the report said. Simmons is a Mount Vernon native who grew up in Yonkers. Simmons lived near the Bedford border on McLain Street in Mount Kisco with his now-estranged wife Tashera Simmons before putting the home into foreclosure in 2016 after filing for bankru…

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by Joe Lombardi
News
Accountant For Restaurant Owner In Westchester, Fairfield Counties Admits To Federal Tax Charge Accountant For Restaurant Owner In Westchester, Fairfield Counties Admits To Federal Tax Charge
Accountant For Restaurant Owner In Westchester, Fairfield Counties Admits To Federal Tax Charge A Long Island accountant who worked for a pizzeria owner with locations in Fairfield and Westchester counties is facing prison time after he admitted to tax offenses. Suffolk County resident James Guerra, age 58, of Dix Hills, pleaded guilty in U.S. District Court to one count of willful failure to collect and pay over withholding taxes following his arrest for turning a blind eye to his boss failing to pay taxes. U.S. Attorney for the District of Connecticut John Durham said that Guerra worked as an accountant for Bruno DeFabio, who owned these restaurants in Westchester and Fairfield coun…

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by Zak Failla
News
Seven From Westchester Among 12 Gambino Crime Family Members Admitting To Multiple Crimes Seven From Westchester Among 12 Gambino Crime Family Members Admitting To Multiple Crimes
Seven From Westchester Among 12 Gambino Crime Family Members Admitting To Multiple Crimes A dozen members and associates of the Gambino organized crime family of La Cosa Nostra admitted to multiple crimes, including racketeering conspiracy, fraud, obstruction of justice and related offenses for criminal activities throughout the New York metropolitan area committed as part of the illicit activities of the Gambino family. One additional defendant pleaded guilty to filing a false tax return.  The defendants also agreed to pay $1.6 million in penalties. The pleas were entered throughout the past week at federal court in Brooklyn. According to court filings and facts presente…

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by Joe Lombardi
News
NY Restaurateur Sentenced For Tax Evasion Scheme NY Restaurateur Sentenced For Tax Evasion Scheme
NY Restaurateur Sentenced For Tax Evasion Scheme A Manhattan restaurateur from Long Island will spend time behind bars after he admitted to a near million dollar tax evasion scheme. Nassau County resident Adel Kellel, 63, of New Hyde Park, the former owners of Raffles Bistro in New York City, has been sentenced to two years in prison after pleading guilty in Manhattan federal court earlier this year to a $771,195 scheme, acting U.S. Attorney Audrey Strauss said. In addition to his prison term, Kellel was also ordered to pay $613,478 in restitution to the IRS and $157,717 to the New York State Department of Taxation and Finance. Strauss s…

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by Zak Failla
News
Long Island Accountant Accused Of Trying To Bribe IRS Agent Long Island Accountant Accused Of Trying To Bribe IRS Agent
Long Island Accountant Accused Of Trying To Bribe IRS Agent A Long Island accountant was arrested after allegedly attempting to bribe an IRS agent auditing his tax returns. East Meadow resident Mohammad Sayeem met with an IRS agent three times at his home between June 17 last year and Sunday, Feb. 16 as they investigated whether he underreported his 2017 taxable income. It is alleged that at their first meeting last year, Sayeem asked the agent to “help him out” with potential tax liabilities, and inquired about whether he could receive gifts.  The agent reportedly said no, though Sayeem offered him an envelope at the conclusion of their meet…

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by Zak Failla
News
Owner Of Long Island Company Sentenced For Paying Official To Approve Development Owner Of Long Island Company Sentenced For Paying Official To Approve Development
Owner Of Long Island Company Sentenced For Paying Official To Approve Development The owner of a prominent Long Island paving company has been sentenced for bribing an Oyster Bay commissioner to facilitate the construction of a senior housing development. Oyster Bay Cove resident Elia “Aly” Lizza was sentenced to a three-year conditional discharge after pleading guilty to one count of bribery in January for bribing an official to construct Cantiague Commons in Hicksville. In addition to his discharge, Lizza also paid $350,000 to settle a civil forfeiture action brought against him by the Nassau County District Attorney’s Civil Forfeiture Bureau.  Nassau County Dist…

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by Zak Failla
News
Westchester Man Among Former Executives To Admit To Multi-Million Dollar Kickback Scheme Westchester Man Among Former Executives To Admit To Multi-Million Dollar Kickback Scheme
Westchester Man Among Former Executives To Admit To Multi-Million Dollar Kickback Scheme Four men - including one each from Long Island and Westchester - will spend time behind bars for their roles in a tax evasion and bribery scheme. Nassau County resident Ronald Olson, of Massapequa, Westchester County resident Michael Campana, of Tuckahoe, and Middletown, New Jersey residents Anthony Guzzone and Vito Nigro, are all facing charges after being busted for evading taxes over the course of nearly a decade. Olson, a construction manager for Bloomberg, LLC, pleaded guilty on Wednesday, July 29 to charges that alleged he evaded taxes on more than $1.5 million in bribes received fro…

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by Zak Failla
News
Restaurateur From Long Island Admits To $771K Tax Evasion Scheme Restaurateur From Long Island Admits To $771K Tax Evasion Scheme
Restaurateur From Long Island Admits To $771K Tax Evasion Scheme A Manhattan restauranteur from Long Island admitted to a near million dollar tax evasion scheme. New Hyde Park resident Adel Kellel, 62, the former owners of Raffles Bistro in New York City, pleaded guilty in Manhattan federal court to a $771,195 scheme, U.S. Attorney Geoffrey Berman announced. Berman said that as of 2011, Kellel was the president and a 45 percent owner of K&H Restaurant, which operated Raffles Bistro in a Manhattan hotel, taking over as 100 percent owner between 2012 and 2015. While he was the owner, Kellel admitted to concealing and did not report a substantial port…

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by Zak Failla
News
Area Nursing Home Operator Admits To Embezzlement, Tax Offenses Area Nursing Home Operator Admits To Embezzlement, Tax Offenses
Area Nursing Home Operator Admits To Embezzlement, Tax Offenses A former nursing home operator in Fairfield County admitted to embezzlement and multiple tax offenses as part of a multi-million-dollar scheme. Chaim Stern, 71, of Flushing, pleaded guilty in Bridgeport federal court to embezzlement and tax offenses related to his operation of nursing homes in Bridgeport and Waterbury. Stern was the principal operator of the Bridgeport Health Care Center (BHCC), Bridgeport Manor, and the Rosegarden Health and Rehabilitation Center LLC in Waterbury, which were privately owned nursing and rehabilitation facilities.  Between 2011 and 2018, Stern stole a…

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by Zak Failla
News
Queens Accountant Sentenced For Scamming Clients In $780K Fraud, Money Laundering Scheme Queens Accountant Sentenced For Scamming Clients In $780K Fraud, Money Laundering Scheme
Queens Accountant Sentenced For Scamming Clients In $780K Fraud, Money Laundering Scheme A tax accountant from Queens will spend nearly four years in prison after admitting to scheming clients out of more than $750,000 as part of an elaborate scheme that allowed him to live a lavish lifestyle. Salvatore Arena, 46, has been sentenced to 42 months in prison after he pleaded guilty to defrauding clients who trusted him to prepare and pay their taxes, misappropriating $780,000 of client money for his own use over several years.  U.S. Attorney Geoffrey Berman said that from January 2014 through March this year, Arena purported to offer tax services, including the preparation an…

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by Zak Failla
News
Father, Son Owners Of Long Island Company Admit To $8.6M Kickback Scheme Father, Son Owners Of Long Island Company Admit To $8.6M Kickback Scheme
Father, Son Owners Of Long Island Company Admit To $8.6M Kickback Scheme A father and son who operated an ambulette company on Long Island have admitted to a multi-million kickback scheme. Igor Radinovskiy, 60, and Aleksandr Radinovskiy, 37, both of Brooklyn, the co-owners of Sabe Ambulette Services in Brooklyn and North Bellmore, pleaded guilty in federal court to one count of conspiracy to offer and pay health care kickbacks and one count of conspiracy to defraud the lawful functions of the IRS. The two admitted to paying kickbacks to co-conspirator drivers who recruited Medicaid beneficiaries for transportation to clinics in Brooklyn and Queens, referring the…

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by Zak Failla
Politics
Michael Cohen Starts Sentence At Area Prison Called 'Castle Behind Bars' Michael Cohen Starts Sentence At Area Prison Called 'Castle Behind Bars'
Michael Cohen Starts Sentence At Area Prison Called 'Castle Behind Bars' Michael Cohen, the former personal lawyer and so-called "fixer" for President Donald Trump, will be reporting to a facility on Monday, May 6 once named by Forbes as one of the "10 cushiest prisons" in America. The 52-year-old Cohen was sentenced in December, 2018 to three years after he admitted to lying to Congress about Trump’s business dealings in Russia, breaking campaign finance laws on behalf of Trump and evading $1.4 million in taxes related to his personal businesses.  The Otisville Federal Correctional Institution, where Cohen will begin his sentence, is located in O…

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by Joe Lombardi