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Queens Chronicle

Tailor to the stars owes $1.7M to gov’t

Ramchandani passed tax to customers

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Posted: Thursday, March 7, 2013 10:30 am | Updated: 10:58 am, Thu Mar 14, 2013.

Tailor Mohanbhai “Mohan” Ramchandani of Jackson Heights, owner of thecustom clothing businessin Manhattan that markets itself as outfitting celebrities and sports stars, fell grossly behind on his taxes, according tostate Attorney General Eric Schneiderman.

Ramchandani, 66,pleaded guilty to felony charges last Tuesday related to a 10- year scheme to evade payment of New York sales and income taxes.

He agreed to pay $5.5 million to settle separately filed civil claims under the False Claims Act. The law requires defendants to pay triple damages and civil penalties if foundliable.

The attorney general’s investigation revealed that since at least 2002, Ramchandani and his business,Ramchandani’s Custom Tailors,knowingly failed to pay at least $1.7 million in state and local sales taxes that they nevertheless charged to customers, Schneiderman said. In addition, for tax years 2007, 2008 and 2009, Mohan knowingly failed to pay at least $256,000 in state and local personal income taxes.

“As an immigrant to the United States, I have worked hard all my life to build a good business, support my family and contribute to the community,” Ramchandani said. “I made several mistakes with regard to the payment of taxes and I take full responsibility for my actions. I have told authorities of my intent to pay all monies owed and the penalties through an agreed upon schedule. Indeed, I have already paid a substantial portion of what I owe.”

In exchange for his guilty plea, he will be sentenced to a prison term of one to three years, according to the AG.

“There are no excuses for tax cheats — regardless of how prominent they are,” Schneiderman said. “Mr. Ramchandani’s conviction for orchestrating this multi-million dollar scheme to defraud taxpayers sends a clear message that those who rip off the public will be held accountable for their crimes.”

— Josey Bartlett

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