4-10-2008

MINEOLA, NY – Days before the national income tax filing deadline, Nassau County District Attorney Kathleen Rice announced that her office has arrested and charged a CPA, an attorney, and an accountant for tax fraud. Rice also announced that a stock broker has pleaded guilty to tax evasion and has agreed to pay more than $100,000 in back taxes and penalties to New York State. Rice was joined by New York State Department of Taxation and Finance Commissioner Robert L. Megna as she announced the results of their joint operation targeting tax cheats in Nassau County.

“Despite tough economic times, thousands of Nassau County families manage to pay their taxes and play by the rules,” Rice said. “My administration has made it a priority to protect those families by going after their unscrupulous neighbors. Today’s arrests send the very clear message that if you cheat the system, cheat your clients, or cheat your fellow taxpayers, we will come after you.”

Hicksville CPA charged with forging IRS documents

James Napolitano, 55, a certified public accountant practicing in Hicksville, was arrested this morning by district attorney investigators and a United States Treasury agent and charged with Forgery in the Second Degree and Criminal Possession of a Forged Instrument in the Second Degrees. In an attempt to assuage a Manhattan man who was in the midst of a tax liability disagreement with the IRS, the defendant allegedly forged a letter from the IRS indicating that the situation had been resolved in his client’s favor. In reality, the IRS still believed the man owed thousands of dollars in taxes. A legitimate accountant would later assist the man in his successful challenge of the tax liability. Napolitano had been paid $2,000 a month to handle the client’s accounting and tax preparation.

He will be arraigned today in First District Court, Hempstead. He faces up to seven years in prison if convicted of the charges. Napolitano is being represented by Maura Nicolisi, Esq. The case was referred to the District Attorney’s Office by the United States Treasury Department’s Office of Inspector General for Tax Administration.

Merrick attorney dodges taxes on more than $2M in income

Alexander P. Rosenberg, 60, a Merrick attorney, was also arrested this morning by district attorney investigators for failing to file state income tax returns from 2002 to 2006, despite earning more than $2 million during that time.

Currently a partner at the law firm of Kauff, McClain & McGuire, LLP in Manhattan, Rosenberg owes back taxes totaling $320,606 after interest and penalties.

Rosenberg was charged with felony Repeated Failure to File Personal Income and Earnings Taxes. He will be arraigned today in First District Court, Hempstead. He faces up to four years in prison if convicted of the charges. The defendant is being represented by Joel Winograd, Esq.

The case was referred to the Nassau County District Attorney’s Office by NYSDTF Revenue Crimes Bureau and was handled by Revenue Crimes Auditor Virginia Urzi under the supervision of Senior Auditor Nicholas Capkovic, Chief Auditor Tommy Chan under supervision of Assistant Deputy Commissioner Bruce Kato Deputy Commissioner William Comiskey, Chief Counsel Peter Bloch and NYSDTF Commissioner Robert Megna.

Accountant advised local businesses to cheat

Yesterday morning, State Tax Department investigators arrested and charged Ismet Hepcakar, 68, of Staten Island, with multiple felonies after he allegedly advised business clients to underreport their income to avoid tax liability.

Hepcakar, a Bronx-based tax preparer, has been charged with Grand Larceny in the Second Degree, Scheme to Defraud in the First Degree, two counts of Offering a False Instrument for Filing in the First Degree, and two violations of Tax Law 1808(b) – Aiding or assisting in the giving of fraudulent returns. Hepcakar is facing up to 15 years in prison if convicted of the charges.

An investigation by NYSDTF’s Petroleum, Alcohol and Tobacco Bureau (PAT B) into cigarette wholesalers and cash businesses which sold cigarettes suspected of underreporting sales to avoid sales tax liability, led to three Nassau County gas stations located in Seaford, Roosevelt and Levittown. Hepcakar was found to be the accountant to all three stations, preparing their returns and often signing his client’s name to the return, sometimes without his client’s review. As a result of the investigation, the three gas station corporations pled guilty to violating state law and paid a total of $980,000 in taxes and penalties.

In addition, Hepcakar offered to help two undercover New York State Tax Department employees, one posing as a gas station owner and one as an accountant, violate state tax law. The undercover employee posing as an accountant claimed to be newly retained by the gas stations to analyze the tax returns, and met with Hepcakar in December 2007. Hepcakar admitted that when he prepared the returns for the gas stations he “did some discounting,” to avoid tax liability.

In a subsequent meeting with the undercover employee posing as a gas station owner, Hepcakar advised him to ignore his current tax liability and “not wake anybody up.” He also suggested that the gas station owner form a new corporation and “hide some gallons” from the State. He also offered his services as accountant.

The case was referred to the Nassau County District Attorney’s Office by NYSDTF’s PAT B and was handled by PAT B Auditor BJ Scremezzi and Detective Sgt. Alec Zef under supervision of Director Thomas Stanton, Deputy Commissioner William Comiskey, Chief Counsel Peter Bloch and NYSDTF Commissioner Megna.

The defendant was arraigned Wednesday afternoon in First District Court, Hempstead before Judge Norman Janowitz. He was released on his own recognizance and is due back in court April 14.

Assistant District Attorney Guido Gabriele, of the DA’s Economic Crimes Bureau, is handling the Napolitano, Rosenberg and Hepcakar cases for the District Attorney’s Office. Hepcaker is being represented by Alexander Kelly.

Great Neck stock broker pleads guilty to tax evasion

Jason Konior, an equities broker formerly of Great Neck, pleaded guilty Monday to dodging income taxes on the nearly one million dollars he earned between 1999 and 2003.

In pleading guilty to felony Repeated Failure to File: Personal income and Earnings Taxes, Konior, now living in Manhattan, agreed to pay $107,445 to New York State in back taxes, penalties and interest.

He is scheduled to be sentenced June 18, 2008. Deputy Chief Marshall Trager of the Economic Crimes Bureau is handling the case for the District Attorney’s Office. Konior is being represented by Ed Lieberman, Esq.

‘The Tax Department is committed to rooting out fraud and exposing those who deliberately seek to avoid their tax obligations,” Commissioner Robert L. Megna said. “Honest taxpayers who voluntarily meet their obligations are the victims when tax cheats commit crimes of fraud and larceny. These cases illustrate the Department’s determination to aggressively investigate criminal violations of our tax laws and to work with local prosecutors such as District Attorney Rice to bring tax cheats to justice. We're grateful to DA Rice and her staff for their assistance.”

The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.

DA: Tax Fraud Probe Nets CPA, Lawyer, Accountant

Rice announces three fraud arrests and a guilty plea; issues warning to filers days before tax deadline