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Office of the District Attorney P. David Soares Dozens of Real Estate Professionals Face Felony Charges for State Tax Evasion Totaling More Than $650,000
ALBANY , NY – District Attorney P. David Soares along with New York State Commissioner of Taxation & Finance, Robert L. Megna, announced today that 5 individuals were arraigned for failing to file New York State personal income tax returns, and the remaining 26 will be arraigned on April 4, 2008. The 31 individuals are believed to owe over $650,000 in tax liability. The charges are the result of an initiative undertaken by the New York State Department of Taxation & Finance’s Office of Tax Enforcement to identify professionals who have failed to file and remit personal income taxes to the State. The 31 people are all real estate professionals who received 1099 income in tax years 2000 through 2006. Twenty-nine of those accused face violations of §1802(a) of the New York State Tax Law, an “E” Felony, for failing to file returns for three or more consecutive tax years, having a tax liability in each of those years, and, if found guilty, may be sentenced to a maximum of 1 1/3 to 4 years in state prison. The remaining 2 defendants are facing misdemeanor charges, for failing to file in a given tax year or non-consecutive years, in violation of §1801(a)of the New York State Tax Law, exposing them, upon conviction, to up to a year in jail. The defendants range from independent contractors with a small to moderate business, to agents with multi-million dollar listings with large New York City firms. New York State Department of Taxation and Finance Commissioner Robert L. Megna said, "We estimate that the taxpayers arrested today collectively failed to report more than $13 million in income and evaded about $650,000 in income taxes they owed the State. By not paying their fair share of taxes, these individuals not only deprived the state of needed revenue but they shortchanged their neighbors and fellow citizens who were forced to shoulder a greater share of the tax burden. Those who fail to file their returns cost the state hundreds of millions in lost tax revenues each year. Indeed, the federal government estimates that approximately 11% of the tax gap is caused by non-filers. As today's cases demonstrate, the Department is committed to identifying and prosecuting those who evade their tax liability by deliberately fail to file their returns. We thank District Attorney Soares for his aggressive prosecution of these cases." “All residents of New York State have an obligation to file and pay state taxes, but these thirty-one people chose to ignore that obligation - breaking the law in Albany County, the home of the Department of Taxation and Finance. Tax evaders place an undue burden on the rest of us and this Office will continue to partner with Commissioner Megna and the Tax Department to hold people accountable for defrauding the government and residents of this state,” commented DA Soares. The following defendants were arraigned in Albany City Court this morning and released on their own recognizance pending cooperation with the Tax Department to pay restitution and file accurate tax returns: Matthew Quagliano, 43, Buffalo , New York Failure to file tax years 2003 - 2006, $20,750.00 liability Charged with two felonies, Tax Law §1802(a) +++ Adam Krause, 39, West Babylon , New York Failure to file tax years 2000 - 2006, $29,218.00 liability Charged with five felonies, Tax Law §1802(a) +++ Shirley Stilgenbauer, 73, Mt. Kisco , New York Business: Prudential, Holmes & Kennedy Real Estate Failure to file tax years 2004 - 2006, $10,933.00 liability Charged with one felony, Tax Law §1802(a) +++ Joseph Fava, 61, Schenectady , New York Business: Realty USA Failure to file tax years 2004 - 2006, $10,749.00 liability Charged with one felony, Tax Law §1802(a) +++ Diane Campbell, 57, Waterford , New York Business: Realty USA Failure to file tax years 2004 - 2006, $6,577.00 liability Charged with one felony, Tax Law §1802(a)
The following individuals are scheduled to appear in court on April 4, 2008 as part of an ongoing investigation by the NYS Tax Department: Mary Ann Mitchell, 54, & George F. Mitchell, 57 , Tuxedo Park, New York Business: Prudential Rand Realty +++ Camille McKinley, 46, New York , New York Business: Sotheby’s International Realty +++ John E. O’Neil, 47, Massapequa , New York Business: NYonlinerealty.com +++ Elizabeth A. Clarke, 56, Southampton , New York Business: Agawam Office of Century 21 +++ Nancy T. Huang, 76, Elmhurst , New York Business: Humble Realty, Inc. +++ Stanley March, 62, & Darleen March, 52, North Creek , New York Business: Adirondack Community Homes Realty, Inc. +++ Richard J. Burt, 60, & Virginia L. Burt, 66, Gansevoort , New York +++ Phyllis Kelly, 44, Sayville , New York Business: One on One Realty +++ Denise Buser, 46, East Islip , New York Business: Denise Buser Realty +++ Donna Stovall, 51, Rocky Point, New York +++ Mark D’Angelo, 46, Bronxville , New York 10708 Business: Mark Management Company +++ Carolyn Morris, 63, Hollis , New York +++ Dennis Hughes, 58, New York , New York Business: Corcoran Group +++ James McKeown, 49, Freeport , New York +++ Richard Brickell, 47, New York , New York Business: Joseph P. Day Realty +++ Joseph Carris, 77, New York , New York Business: Warburg Realty +++ Kathlene Sloan , Washington DC +++ Sarah Brady, 61, Staten Island , New York Business: Desimone Realty +++ Solomon Knopf, 50, Brooklyn , New York +++ Patrick Brennan, 39, Brooklyn , New York Business: Corcoran Group +++ Gerald Scott Moore, 51, New York , New York Business: Brown Harris Stevens Real Estate Group +++ Gabriel Bedoya, 50, New York , New York +++ Miriam Sirota, 37, Brooklyn , New York Business: Corcoran Group ADA John Spencer and ADA Sean Childs, both from the Financial Crimes Unit, are handling the prosecution of this case.
All charged individuals are presumed innocent until proven guilty. # # # For further information contact: Heather Streeter Orth
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