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Acting New York State Commissioner of Taxation and Finance Barbara G. Billet today announced the conviction of three businessmen in separate prosecutions for criminal tax fraud. Two of the convictions involve the theft of hundreds of thousands in sales tax revenues and the criminal evasion of hundreds of thousands of income and corporate taxes. In addition, a fourth businessman faces tax charges in Suffolk County for fraudulently evading $171,000 in owed income taxes.
Michael Weisbrod, 57, of 165 East 66th Street, Manhattan, NY, is the owner of Weisbrod Chinese Art, LTD, a Manhattan art gallery. Weisbrod pled guilty on December 19, 2007, for failing to collect sales tax on sales made at his gallery over a five year period and his company pled guilty to repeatedly failing to file tax returns. As a consequence of these convictions, the defendants will pay $111,046 in sales tax, $260,000 in State and City general corporation and corporate franchise taxes, $150,000 in personal income taxes owed by Michael Weisbrod, $300,000 in criminal fines and $300,000 in penalties and interest. This case was prosecuted by Manhattan District Attorney Robert Morgenthau.
Herman Radwan, 43, of 130 Summit Drive, Nesconset, NY, is the owner of Buckle Up Auto Sales. On December 10, 2007, Radwan pled guilty to felony larceny charges for stealing $202,575 in sales tax revenue which he collected from his customers but failed to pay to the State in 2002 to 2006. Radwan is scheduled to be sentenced on February 4, 2008. This case was prosecuted by Suffolk County District Attorney Thomas J. Spota.
Travel agent Jerry Cummings, 42, of 170 Kennedy Avenue, Hempstead, New York stole tens of thousands of dollars from customers between 2003 and 2005, and failed to report the stolen funds as income. On March 13, 2006, Cummings pled guilty to felony larceny and fraud charges and to a misdemeanor tax count for filing false tax returns. As part of his plea, Cummings was required to pay his income tax liability of $26,596 for the stolen funds. On September 4, 2007, Cummings was sentenced to six months incarceration and five years probation. This case was prosecuted by Nassau County District Attorney Kathleen Rice.
Acting Commissioner Billet said, "These convictions demonstrate the commitment of both the Tax Department and local District Attorneys to combating tax fraud and theft. Honest taxpayers will not carry the burden for those who feel they are above the law, and we will do everything within our power to maintain a fair, honest and professional process that helps taxpayers voluntarily meet their obligations while compelling those who have proven themselves unwilling."
In a fourth criminal case, Sidnei M. Dos Santos, 35, of 96 Fleming Avenue, Newark, New Jersey is being prosecuted in Suffolk County for evading taxes by repeatedly failing to file tax returns. It is alleged that Dos Sontos, the owner of SMS Resistencia Carpentry Company, worked as a subcontractor for many Suffolk County builders by providing labor for the framing of residential homes and that his company earned more than $3 million on Suffolk County construction projects between 2003 and 2005. During that time, neither Dos Sontos nor SMS filed New York State tax returns and they thus evaded approximately $171,000 in taxes owed. On December 6, 2007, Dos Sontos was arraigned in Suffolk County District Court. The charges against him are still pending.
The charges against Mr. Dos Sontos are merely accusations and the defendant is presumed innocent until and unless proven guilty.
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Last Modified: January 22, 2008
