Westchester County District Attorney Janet DiFiore and New York State Department of Taxation and Finance Commissioner Thomas H. Mattox announced today that Steven Malkin (DOB 08/11/58) of 29 Chester Drive, Rye, New York was arrested and charged by Felony Complaint with:
- one count of Grand Larceny in the Second Degree, a class “C” Felony,
- one count of Criminal Tax Fraud in the Second Degree, a class “C” Felony,
- one count of Offering a False Instrument for Filing, a class “E” Felony,
- two counts of Criminal Tax Fraud in the Fourth Degree, a class “E” Felonies,
- one count of Scheme to Defraud in the First Degree, a class “E” Felony.
In addition, Old Tyme Wine & Spirits, Inc. located at 422 Pelham Avenue, in New Rochelle was charged by Felony Complaint with:
- one count of Grand Larceny in the Second Degree, a class “C” Felony,
- one count of Criminal Tax Fraud in the Second Degree, a class “C” Felony.
From January 1, 2006 to March 24, 2011, the defendant who is the sole owner of Old Tyme Wine & Spirits, Inc. located at 422 Pelham Avenue, in New Rochelle, that operates under the name of “Shore Road Liquors” willfully failed to pay over to New York State collected sales tax.
The defendant was aware of the amount of sales tax actually collected by Old Tyme Wine & Spirits, Inc., and failed to remit any of the sales tax collected, by doing so the defendant stole from New York State.
In addition, the defendant between January 1, 2006 and March 24, 2011, who is the sole owner of Law Guides Corp. which is located at 34 East 39th Street, in New York City engaged in a scheme constituting a systematic ongoing course of conduct with intent to defraud customers by charging and collecting from them “sales tax” on sales through an internet website operated by the defendant that prepares paperwork and other services in uncontested divorce cases in New York State. None of the “tax” was ever remitted to New York State.
The total amount of the larceny from unremitted New York State sales tax for both businesses is $380,884.46.
On April 14, 2011, investigators from the New York State Department of Taxation and Finance executed search warrants at Old Tyme Wine & Spirits, Inc., a liquor store which does business as “Shore Road Liquors” at 422 Pelham Avenue, in New Rochelle and at the defendant’s residence.
Records showed that between January 1, 2006 through February 28, 2011, Old Tyme Wine & Spirits, Inc. had gross sales that were $4,506,085.80 more than were reported on its New York State quarterly sales tax returns, and that Old Tyme Wine & Spirits, Inc. collected $380,884.46 more in New York State sales tax than it reported and remitted with its sales tax returns.
The defendant was released on his own recognizance and is due back in New Rochelle City Court on June 16th, 2011.
The defendant faces a maximum of five to fifteen years in state prison on the top counts of the complaint.
Assistant District Attorney Nicole Gamble of the Economic Crimes Bureau is prosecuting the case.