New Jersey used car dealer sent to prison for tax fraud
According to Acting Attorney General John J. Hoffman, a Toms River man was sentenced to three years in prison on Oct. 16 for sales tax fraud after failing to remit more than $156,000 in sales tax to the state. The man reportedly pleaded guilty to second-degree failure to turn over New Jersey sales tax on July 14.
The 58-year-old man was indicted in 2013 following an investigation by the Division of Criminal Justice and the Division of Taxation Office of Criminal Investigations. The investigation reportedly came after a routine canvas in which investigators were looking for dealerships without proper licenses. During the canvas, they discovered that the man's used car dealership had failed to remit any sales tax to the state since opening in 2007.
After a demand for payment by the Division of Taxation, the man then filed sales tax returns. He allegedly attempted to hide the number of vehicles he had sold, and he only remitted $48,593 during the audit. By reviewing filed vehicle registrations, the state determined he should have owed $205,157 for sales tax he had collected. They alleged he took steps to deliberately defraud on his filed returns. In addition to his prison sentence, he was ordered to pay restitution in the amount of $220,797.
White-collar crime charges may result in significant penalties and periods of incarceration in the event a person is convicted. People who learn that they are being investigated for allegedly committing fraud or another white-collar crime may want to seek help from a criminal defense attorney as soon as possible. An attorney may be able to negotiate an agreement for the client that would require restitution while avoiding incarceration.
Source: Toms River Patch, Toms River used car dealer gets jail in $156K sales tax fraud," Karen Wall, Oct. 17, 2015