Four Used-Car Dealers Face Felony Sales Tax Charges

Four Used-Car Dealers Face Felony Sales Tax Charges
Dealers in Monroe, Broome and Tioga Counties charged with stealing $300,000

FOR RELEASE:
IMMEDIATE, Tuesday
March 18, 2008

New York State Commissioner of Taxation and Finance Robert L. Megna today announced that four used-car dealers in Monroe, Tioga and Broome Counties face felony charges in separate cases for stealing more than $300,000 in state and local sales taxes collected from customers. To commit these larcenies, it is alleged that these four car dealers collectively failed to report more than $3.7 million in taxable sales.

Those charged are:

Howard V. Ellinwood of 35 Ridge Meadows Road, Spencerport, New York, the owner of Wholesale Used Cars, 5605 Brockport Spencerport Road in Brockport, New York. Ellinwood is charged with multiple counts of failing to file a sales tax return from September 1, 1999, through February 28, 2007. It is alleged that Ellinwood failed to report more than $978,600 in taxable sales and that he stole $80,192 in sales tax receipts. Ellinwood was arraigned today in the Town Court of Chili, New York.
Richard W. Taylor Jr., of 1154 McLean Rd., Owego, New York, the owner of Rick's Service Center, 111 Southside Drive, Owego, New York. Taylor is charged with failing to file a sales tax return from March 1, 2000, through February 28, 2005. It is alleged that Taylor failed to report more than $1,044,000 in taxable sales and that he stole $80,919.65 in sales tax receipts. Taylor was arraigned today in the Town Court of Owego, New York.
Francis J. Iacovangelo, of 94 Nory Lane, Rochester, New York, the owner of Excell Auto Sales, 2950 Chili Ave., Rochester, New York. Iacovangelo is charged with offering a false instrument for filing and filing a false tax return. It is alleged that Iacovangelo failed to report more than $915,000 in taxable sales and that he stole $74,368 in sales tax receipts. Iacovangelo was arraigned today in the Town Court of Chili, New York.
Dennis J. Grassi, of 210 Rogers Ave., Endicott, New York, the owner of D&D Auto Sales, 2161 NY Rt. 26, Endicott, New York. Grassi is charged with offering a false instrument for filing and filing a false tax return. It is alleged that Grassi failed to report more than $871,000 in taxable sales and that he stole $69,668 in sales tax receipts. Grassi was arraigned today in the Town Court of Maine, New York.

In addition to the charges set forth above, Ellinwood, Taylor, Iacovangelo and Grassi each face top counts of Grand Larceny in the 2d Degree, a class C felony punishable by up to 15 years in prison.

Commissioner Megna said: "In the past year, the Department has significantly increased its commitment to combating tax fraud as part of our effort to close the tax gap. Our newly formed Special Investigations Unit (SIU) is working across the state with local district attorneys to expose and prosecute those who engage in tax fraud. In part, we are targeting sales tax fraud by cash businesses. Sales tax fraud not only deprives state and local governments of needed tax revenues but it also defrauds customers who have paid the sales tax. I commend District Attorneys Green, Mollen and Keene for their aggressive prosecution of these cases."

The cases were investigated by the Special Investigation Unit offices in Buffalo, Rochester and Syracuse.

Commissioner Megna thanked the New York State Police in Monroe and Tioga Counties and the Broome County Sheriff's Department for their assistance in processing the arrests and Monroe County District Attorney Michael C. Green, Broome County District Attorney Gerald F. Mollen, and Tioga County District Attorney Gerald A. Keene for their prosecution of these cases.

All of the defendants are presumed to be innocent unless and until proven guilty.

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Last Modified: March 19, 2008