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Queens Chronicle

Used car dealers charged with fraud

DA: Father-son pair kept $530K in taxes

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Posted: Wednesday, November 27, 2013 10:30 am | Updated: 11:12 am, Thu Dec 5, 2013.

A father and son duo of used car dealers have been charged with more than $530,000 in state sales tax theft for allegedly underreporting sales and neglecting to turn over money collected as sales tax.

The two men, Yunas Khan, 52 and Tabraiz Khan, 27, were charged last week by Queens District Attorney Richard Brown.

Brown, who was joined in the announcement by the New York State Commissioner of Taxation and Finance Thomas Mattox, slammed the two men for allegedly denying the state crucial funds.

“Sales taxes are meant for the public treasury — not the pockets of businessmen,” said Brown. “By purposely defrauding New York government of such a significant sum of revenue, money that could have been used for any number of valuable public purposes, the defendants are alleged to have made every New Yorker a victim.”

According to the criminal complaint, Yunas Khan, who lives in Suffolk County with his son and is the operator of Horse Power Auto Sales in Hollis, allegedly reported sales at Horse Power Auto totaling $2,867,283 with a tax liability of $243,145 between December 2007 and November 2010. But records from the Department of Motor Vehicles show that Horse Power Auto had taxable sales of at least $8,203,582 with a true tax liability of at least $703,932, Brown said. Consequently, a difference of $460,786 in taxes was allegedly collected and not remitted to New York State.

Then, according to the complaint, Tabraiz Khan, the operator of Car Palace of Hollis, reported sales of $248,834 with $21,484 in tax liability between September 2010 and May 2011. But DMV records show that he had taxable Car Palace sales totaling at least $1,102,742 with $97,268 in tax liability. Consequently, a difference of at least $75,784 in tax money allegedly collected and not remitted to the state.

The two men both face 15-year prison sentences if convicted on all the charges against them and their respective entities face at least $10,000 in fines for their allegedly illegal gains.

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