Tax Department And Nassau County DA Announce Guilty Plea By Local Jeweler On Sales Tax Charge

• by New York State Department of Taxation and Finance

ALBANY, NY (10/02/2009)(readMedia)-- New York State Department of Taxation and Finance Acting Commissioner Jamie Woodward and Nassau County District Attorney Kathleen Rice announced today that Frucci's Jewelers, Ltd., located at 18 Nassau Blvd., Garden City South, pled guilty to sales tax evasion and paid more than $207,000 in back state and local sales tax, interest, and penalties.

Frucci's Jewelers was sentenced recently in Nassau District Court and paid $207,926 in back taxes and other penalties. According to the complaint, Frucci's failed to collect $102,729 in state and local sales taxes from customer transactions between March 1, 2004 and November 30, 2007.

This case is the first to arise from an undercover investigation called "Operation Goldrush" conducted by the Tax Department's Special Investigations Unit in Nassau County, and the department's Petroleum, Alcohol and Tobacco Bureau. The investigation continues and additional arrests are likely.

Acting Commissioner Woodward said, "Tax fraud deprives state and local governments of revenues that pay for necessary services such as health care, education and transportation and our department is committed to pursuing those who steal taxes. I thank Nassau County District Attorney Kathleen Rice and her staff for their aggressive prosecution of this case."

District Attorney Rice said, "This business stole from every honest taxpayer in the state who is working hard and playing by the rules. I want to thank state Tax Department staff for their efforts in this investigation. We will continue to work together to ensure that thieves who line their pockets at the expense of taxpayers face punishment."

Acting Commissioner Woodward added, "The Department offers programs such as the Voluntary Disclosure and Compliance Program to encourage delinquent taxpayers to become compliant without facing criminal prosecution or civil penalty. I hope this case encourages such taxpayers to come forward and satisfy their tax obligation. For more information about these programs, go to the Department's website at www.nystax.gov."

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