2017-01-18 / Front Page

Queens Car Dealer Charged In Massive Tax Fraud Scam

By Liz Goff
The owner of three used car dealerships in Queens was charged last week with stealing more than $332,160 in New York City and New York State sales taxes by failing to report more than $3.8 million in car sales, Queens District Attorney Richard Brown said.

Mamdoh Eltouby, 65, owner of Planet Motor Cars, Inc., and Hillside Motors, LLC, which operate at 161-10 Hillside Avenue in Jamaica, and New York Motor Group, LLC, at 60-20 Northern Boulevard in Woodside, was arraigned last week in Queens Criminal Court on three criminal complaints that charge him and his businesses with second-and third-degree grand larceny, first-degree falsifying business records and first-degree offering a false instrument for filing, Brown said.

According to the charges, Eltouby and his three businesses allegedly failed to report a total of $3,852,495.82 in taxable sales of vehicles between March 1, 2010 and March 30, 2015, Brown said. As a result, Eltouby stole a total of more than $332,160.55 in sales tax the businesses collected from customers but failed to forward to the state Department of Taxation and Finance.

It is further alleged that of the sales taxes withheld, a total of approximately $166,181.59 was owed to New York State and approximately $165,978.96 was owed to New York City, Brown said.

Eltouby, who was released without bail at his arraignment, faces up to 15-years in prison, if convicted. His businesses each face a fine of up to $10,000 or double the amount of the illegal gain, if convicted, authorities said.

“When consumers pay sales taxes they expect those funds to go into the public treasury and not to be pocketed by business owners,” Brown said. “These types of paper crimes make every New Yorker a victim by cheating the government and the public out of money that is necessary to maintain services and infrastructure.”

Acting New York State Commissioner of Taxation and Finance Nonie Manion said, “When unethical business owners violate the trust of their communities by failing to pay sales taxes they collect, all New Yorkers pay the price. We’ll continue to work with District Attorney Brown and all levels of law enforcement to ensure that those who don’t play by the rules are held accountable.”

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