Tuesday, 09 September 2014 00:00

NY Shop & Owner Plead Guilty to Grand Larceny & Criminal Tax Fraud, Owe $175,000

A Staten Island, NY, body shop pleaded guilty to felony grand larceny and its owner pleaded guilty to a misdemeanor count of criminal tax fraud on August 25. They were responsible for paying $175,000, which included $135,000 in back taxes owed by the corporation and individual as well as $40,000 in interest accrued, according to reports by Frank Donelly in siadvance.com and press release information from the office of the Richmond county district attorney.

Richard Corio, president and 100 per cent shareholder of Absolute Car Carriers, Inc. was arrested in November 2013. Corio and his business were indicted by a grand jury and arraigned on multiple felony charges of grand larceny and criminal tax fraud as well as failure to file a return or report, and city criminal tax fraud. Corio was released on his own recognizance.

The case was heard in the Richmond County Supreme Court nearly a year later. “The defendants were convicted of not paying the owed sales tax, corporate income tax and personal income tax all while operating a lucrative business,” said Richmond County District Attorney Daniel M. Donovan, Jr. “Richard Corio and Absolute Car Carriers, Inc. have been ordered to repay not only the taxes they evaded, but also a hefty amount of interest.”

The defendants are still liable civilly for penalties that may be collected by state and city tax authorities.

Incorporated in December 1997, Absolute Car Carriers conducted business as OK Auto Body and Auto Collision, Inc. During a three-year period the company grossed more than $1 million; however, only just over $70,000 was reported in sales. That figure equates to about seven percent of the total income.

Prosecutors said the business under-reported sales tax from March 2009 to February 2012 and didn’t file sales taxes for two quarters. Company officers can be personally held liable for non-payment or under-payment of sales taxes, known as trustee taxes. Over $75,000 of sales taxes were paid back in restitution.

Corio also under-reported his personal income tax for all three years and was ordered to pay back over $10,000 in restitution. Absolute Car Carriers had to pay more than $50,000 in corporate income taxes owed to New York City.

“Sales tax evasion disadvantages honest business owners and steals directly from customers,” said Thomas H. Mattox, the New York State Department of Taxation and Finance Commissioner.

The case was prosecuted by Assistant District Attorney Jin Lee under the supervision of Assistant District Attorney Kyle Reeves, the chief trial counsel.

Corio’s lawyer, Joseph Sorrentino, had not responded to Autobody News' request for a comment as of press time.

To see the original local story go HERE.

 

Read 631 times