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New York State Department of Taxation and Finance Commissioner Robert L. Megna today announced that two auto dealers in Broome and Tioga Counties recently pleaded guilty to grand larceny charges in separate cases for stealing about $150,000 in state and local sales taxes that they collected from customers but failed to remit to the state.
To settle the charges, the men will be required to pay more than $375,000 in tax restitution, fines, interest and penalties.
Richard W. Taylor Jr., owner and operator of Rick's Service Center at 111 Southside Drive in the Town of Owego, Tioga County, pleaded guilty May 23 in Tioga County Court to second degree grand larceny and admitted that he stole sales taxes that he collected from his customers over a five year period that ended in 2005.
A Tax Department audit revealed that, between March 2000 and February 2005, Taylor made $1,044,539 in sales for which he collected $80,919 in sales tax from his customers. Rather than paying these collected taxes to the state and county, Taylor admitted that he stole these revenues by failing to file sales tax returns or remit the tax.
Taylor has already paid more than $154,000 in tax, interest and penalties and will pay nearly $16,000 more prior to sentencing on June 20. It is anticipated that Taylor will be sentenced to a three-year conditional discharge.
In a separate case, Dennis J. Grassi, owner and operator of D&D Auto Sales at 2161 NYS Rt. 26 in the Town of Maine, Broome County, pleaded guilty May 21 in Broome County Court to third degree grand larceny. As part of his guilty plea, Grassi admitted that he stole sales taxes that he collected from his customers over a four year period ending in 2006.
A Tax Department audit revealed that, between March 2002 and May 2006, Grassi underreported the amount of his taxable sales which exceeded $871,000. Grassi admitted that he stole more than $69,000 in sales tax during that period.
As part of his plea deal Grassi will pay $204,890 in tax, penalty and interest. It is anticipated that he will be sentenced on August 6 to a five-year term of probation.
Commissioner Megna said, "The Tax Department is committed to exposing and prosecuting tax fraud. In cases across the state, our Special Investigations Unit is working with district attorneys to aggressively target sales tax fraud by cash businesses, including used car dealers. These crimes deprive state and local governments of legitimate tax revenue, and cheat customers of the sales tax that was honestly paid. Especially in these difficult budgetary times, when both the state and local governments are strapped, we are committed to leveling the playing field and to insuring that all business operators abide by the rules. Those who line their own pockets with taxpayer money will be held accountable."
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Last Modified: June 06, 2008
