Non-Filer Enforcement Project Continues As 18 Are Charged With Failing To File State Tax Returns

ALBANY, NY (02/02/2010)(readMedia)-- New York State Department of Taxation and Finance Acting Commissioner Jamie Woodward today announced that 18 individuals across the state have been arrested on tax evasion charges in coordinated enforcement actions with district attorneys.

The defendants have been charged with evading hundreds of thousands of dollars in state income taxes on millions in earnings by not filing tax returns over multiple years. Those arrested include five attorneys, a doctor, a CPA, an anesthesiologist, an annuity underwriter, an English Professor at Hunter College and a former Monroe County Assistant District Attorney.

The arrests continue the Tax Department's statewide enforcement initiative targeting those who evade their tax obligations by not filing their state returns. To date 25 other non-filers have been arrested statewide in connection with this initiative.

"Tax evasion by non-filers is a major problem that costs the state hundreds of millions in tax revenues each year," said Acting Commissioner Woodward. "Non-filers should be aware that the department is determined to investigate and prosecute this misconduct. Using enhanced technology and beefed-up enforcement resources, we will continue to bring these cases. We are fortunate to have the cooperation of district attorneys from across the state. In the past two years the number of income tax prosecutions initiated by the department has increased more than 360 percent."

"Those delinquent taxpayers who are not yet under audit or investigation are encouraged to avoid penalties or criminal prosecution by participating in the department's Voluntary Disclosure and Compliance Program. For more information about these programs, go to the department's website at www.nystax.gov. It is hoped that today's cases will encourage such taxpayers to come forward and satisfy their obligations."

"Tax cheats steal from us all," said Brooklyn District Attorney Charles J. Hynes. "My office takes tax evasion very seriously and prosecutes to the fullest extent of the law, realizing that without tax dollars there would be no public education, no law enforcement, and none of the other programs we rely on and hold dear. I would like to thank Acting Commissioner Woodward for her agency's hard work and dedication to this pressing issue."

Queens District Attorney Richard A. Brown said, "The defendants are accused of attempting to shirk their civic and legal obligations by not paying their fair share of taxes. In these tough economic times when every tax dollar is being stretched to the limit to pay for essential government services, such conduct is unconscionable."

"When people cheat on their taxes, every resident of New York State is a victim," Nassau County District Attorney Kathleen Rice said. "At a time when families are struggling, it is imperative that everyone pay their fair share. My office is working to ensure that every one of these tax cheats is prosecuted for their crime and repays every nickel they stole."

Acting Commissioner Woodward emphasized that these cases would not have moved forward without the assistance of District Attorneys from around the state. She wished to thank Brooklyn District Attorney Charles J. Hynes, Nassau County District Attorney Kathleen Rice, Queens District Attorney Richard A. Brown, Bronx District Attorney Robert Johnson, New York County District Attorney Cyrus R. Vance Jr., Onondaga County District Attorney William J. Fitzpatrick, and Monroe County District Attorney Mike Green for their assistance in the prosecution of these cases.

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

Below is a list by region of those charged for failing to file New York state personal income taxes.

Those Charged in Brooklyn:

Antoinette Lamb - 67, of Brooklyn, was charged with Repeated Failure to File Personal Income Tax returns, an E felony, Tax Fraud in the Fourth Degree, a class E felony, and two counts of failure to file a personal income tax return, a misdemeanor. Lamb is employed as the Director of Human Resources for the East Orange, New Jersey Board of Education. She failed to file income tax returns for the years 2005-2008 and her income in that time was $440,509. Her estimated tax liability to the state is $45,142. If convicted, Lamb faces up to 4 years in state prison.

Gloria Syquia - 64, of Brooklyn, is employed by various medical offices as an anesthesiologist. Syquia is charged with one class E felony count of Repeated Failure to File Personal Income Tax returns for tax years 2003-08 and four counts of Criminal Tax Fraud in the Fifth Degree for failing to file a tax return for 2003 through 2008 and pay over $77,372 in tax due. A department investigation determined that Syquia's income totaled $735,045 for the delinquent years. She was arraigned in the Criminal Court of Kings County on January 19. If convicted, Syquia faces up to four years in state prison.

Isaac Martin - 56, of Brooklyn, employed by Verizon, is charged with one class E felony count of Repeated Failure to File Personal Income Tax returns for tax years 2003-08 and five counts of Criminal Tax Fraud in the Fifth Degree for failing to file a tax return for 2003 through 2008 and pay over $57,902 in tax due. A department investigation determined that Martin's income totaled $650,898 for the delinquent years. He was arraigned in the Criminal Court of Kings County on January 19. If convicted, Martin faces up to four years in state prison.

Sye Gross - 35, of Brooklyn, was charged with one count of Repeated Failure to File Personal Income Tax returns, a class E, one count of Criminal Tax Fraud in the Third Degree, a class D felony, and two counts of Failure to File Personal Income Tax returns, a misdemeanor. Gross is the owner of a printing company in Waymart, Pa. He failed to file tax returns for the years 2005-08. During this period he earned $596,000 and failed to pay $46,098 in state income taxes. If convicted, Gross faces up to seven years in state prison.

Those Charged in Queens:

Stephen Wetta - 54, of Ridgewood, an English Professor at Hunter College in Manhattan. He is charged with two class E felony counts of Repeated Failure to File Personal Income Tax returns from 2004-07. He is also charged with six misdemeanors for failing to file and pay his state personal income tax returns for tax years 2006-08. During that time, Wetta earned $234,633 and he failed to pay $11,279 in state income taxes. If convicted, Wetta faces up to four years in state prison.

Israel Zand - 59, of Flushing, the president of Comprehensive Health Care Associates. He is charged with four class E felonies and six misdemeanor counts of Failure to File Personal Income Tax returns from 2002-08. During that time, Zand earned $402,022 and he failed to pay $37,962 in state income taxes. If convicted, Zand faces up to four years in state prison.

Mark Kerr - 49, a Verizon Field Technician, is charged with five class E Felony counts for Failing to File Personal Income Tax returns for tax years 2002-08. He is also charged with six misdemeanors for Failing to File and Pay his New York State Personal Income Tax Returns.

Charged in the Bronx:

Terrence McDonald – 50, of Riverdale, an attorney employed at Vertical Technologies. Inc., and the Bradlau Group in New Jersey is charged with two class E felony counts of Repeated Failure to File Personal Income Tax returns for tax years 2004-2007. Documents show that in that time McDonald's income was $857,762. The felony complaint states that McDonald has unpaid tax liability for those years totaling $29,541. He was arraigned in a felony complaint filed in Bronx County Court on January 29. He is being prosecuted by the Bronx County District Attorney's Office. If found guilty, McDonald faces up to four years in state prison on each charge.

Those Charged in Nassau County:

Gerald Gartner – 53, a CPA, residing in Lawrence and the Chief Financial Officer for AHRC-NYC Foundation, a fund-raising and grant entity, located in Manhattan, failed to file tax returns for years 2005-08. He is charged with violating the Tax Law for Repeated Failure to File Personal Income Tax returns, a Class E felony, and Criminal Tax Fraud in the third degree for failing to file his personal income tax for 2008 as a Class D felony. During that time he earned $1,505,818.00 and failed to pay $68,986.00 in income taxes. If found guilty, Gartner faces up to seven years in State Prison.

David Mollon – 47, of Great Neck, an attorney at an international law firm located in Manhattan failed to file tax returns for the years of 2006-08. He is charged with two counts of violating the Tax Law, Criminal Tax Fraud in the third degree, a D felony, Failure to File a Personal Income Tax return for 2008 and Failure to File, a misdemeanor, for failing to file a personal tax return for the years 2006 and 2007. During that time he earned $ 1,792,081 and failed to pay $117,490 in income taxes. If found guilty, Mollon faces up to seven years in State Prison.

Dennis A. O'Leary – 57, of Westbury, an attorney and partner at the law firm O'Leary & O'Leary located in Garden City. He failed to file tax returns for the years between 2004-08. He is charged with one count of Repeated Failure to File Personal Income Taxes, a Class E felony. He also charged with a misdemeanor count Criminal Tax Fraud in the fifth degree for failing to file his 2008 NYS personal income tax return. During this time he earned $763,345 and failed to pay $23,095.00 in income taxes. If found guilty, O'Leary faces up to four years in State Prison.

Avelino Rosales - 62, a physician of Cedarhurst with an office located in Sunnyside, Queens. He failed to file tax returns for years of 2002-06. He is charged with Repeated Failure to File Personal Income Taxes, an E felony. During that time he earned $1,179,400.00 and failed to pay $44,010.00 in income taxes. If found guilty, he faces up to four years in State Prison.

Kelly D. Talcott – 50, an attorney from Sea Cliff and working at a law firm located in Manhattan failed to file tax returns for five years, 2002-05 and for 2008. Talcott is charged with two felonies; one Class E felony for Repeatedly Failing to File New York State Personal Income Tax returns and a Class D felony, Criminal Tax Fraud in the third degree, for failing to file his personal income tax return for 2008. During that time he earned $2,689,695.00 and failed to pay $111,758.00 in income taxes. If found guilty, he faces up to seven years in prison.

Those Charged in New York County:

Wilbur Gonzalez, 37, a real estate broker in Manhattan has pleaded guilty to one count of Repeated Failure to File New York Personal Income Tax returns, a class E felony for failing to file in tax years 2005, 2006, and 2007; two counts of Failure to File a Return or Report or supply information, or supplying false information relating to tax years 2006 and 2007. Gonzalez was the subject of a joint investigation conducted by the department and the Manhattan District Attorney's office. The investigation pertained to his failure to file his 2003 through 2007 New York State/New York City personal income tax returns. As a condition of his plea, Wilbur Gonzalez has agreed to pay $393,353 in outstanding income tax liability for the years 2003-07. On January 29, he was sentenced to a conditional discharge and ordered to pay a criminal fine of $10,000 on each misdemeanor count.

Marc A. Bernstein, 55, of Manhattan, formerly a named partner of Bernstein & Bernstein, L.L.P, in Manhattan, is charged with three class E felony counts of Repeated Failure to File Personal Income Tax returns for tax years 2003-07. In addition, Bernstein is being charged with one count of Offering a False Instrument for Filing, a class E felony; and one count of Criminal Tax Fraud in the second degree, a class C felony for filing a false personal income tax return for tax year 2008. The Class C felony is punishable by up 15 years in prison and a class E felony is punishable by up to four years in prison.

Those Charged in Upstate New York:

Gene DeMarco, 62, of the town of Lockport, was charged with two felony counts of Repeated Failure to File Personal Income Taxes for the years 2003-06 and one misdemeanor count of Failure to File. The investigation found that DeMarco's income totaled $325,000 for the delinquent years, with state tax liability of $16,414. It was also determined that DeMarco had additional tax liabilities of $3,327 for tax years 2007 and 2008 for a total unpaid liability of $19,741. He will return to Lockport city court on February 11. If found guilty, DeMarco faces up to four years in state prison.

Christopher Howe, 49, and Melanie Howe, 48, of 105 Walton Road, North Syracuse, each are charged with one felony count of Repeated Failure to File Personal Income Tax returns for tax years 2005 through 2007. Christopher Howe is an independent contractor who worked for the Paul Fowler Construction Company, and Melanie Howe is an annuity underwriter at AXA Equitable. After being notified of the department's investigation, Christopher Howe and Melanie Howe filed returns indicating that they earned $365,091 over those three years and owed the state $14,370 in back taxes. The couple will be arraigned in the City Court of Syracuse on February 5. If found guilty, each faces up to four years in state prison.

Harvey J. Bunis, 61, an attorney from Rochester, is charged with four felony counts of Repeated Failure to File Personal Income Tax returns from 2002-07. The investigation determined Bunis earned a total of $350,000 from 2002 through 2008. During this period Bunis served as a part-time Assistant District Attorney at the Monroe County District Attorney's office. He resigned from that position in June of 2009. He also operated a private law practice. If found guilty, Bunis faces up to four years in state prison.

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