Fails to Report More Than $3 Million in Sales
IMMEDIATE, Thursday
October 13, 2011
The New York State Department of Taxation and Finance announced today that the owner of an Elmsford restaurant was arrested on felony charges for failing to turn over $260,000 in state and city sales taxes, and for failing to report more than $3 million in sales for a five year period.
Frank Confalone, 36 Park Drive, Ossining, New York, was arraigned on a felony complaint in the Village of Elmsford Justice Court charging him with Grand Larceny in the Second Degree, a class C felony; Criminal Tax Fraud Act in the Second Degree, a class C felony; Offering a False Instrument for Filing in the First Degree, a class E felony; Criminal Tax Fraud in the Fourth Degree, a class E felony; and Failure to Keep Adequate Records, a class A misdemeanor.
Confalone's corporation - F.M.C. Market, Inc. - was charged with Grand Larceny in the Second Degree and Criminal Tax Fraud in the Second Degree. Confalone, 57, is sole shareholder of F.M.C. Market, Inc. which operates Frank's Food Court, 349 Tarrytown Road, Elmsford.
On May 17, 2011, investigators from the New York State Department of Taxation and Finance executed a search warrant at the food court, and at five cafeterias in nearby office buildings also operated by F.M.C. Markets, Inc. The cafeterias are: Heritage Café, 80 Grasslands Road; Knollwood Café, 399 Knollwood Avenue; 580 Café, 580 White Plains Road, all of Greenburgh; the 660 Café, 660 White Plains Road, and Hillside Café, 100 Hillside Avenue, both of Tarrytown. Investigators also executed a search warrant at Confalone's residence, 36 Park Drive, Ossining.
The felony complaints allege Confalone failed to report more than $3,500,000 in sales on F.M.C. Market, Inc.'s sales tax returns and stole more than $263,000 in sales tax.
The complaint also alleges that Confalone filed a false withholding tax return to conceal his off-the-books employees and failed to report the cash he took from the business on his 2009 personal income tax return.
Under the tax law, merchants who collect sales tax are required to keep certain records of their sales. Confalone is charged with a misdemeanor for failing to keep those records.
Tax Commissioner Thomas H. Mattox urges delinquent taxpayers to contact the Tax Department. The Department offers a Voluntary Disclosure and Compliance Program that can be accessed by taxpayers to correct past returns and avoid both civil and criminal penalties. Information on the program is available on the Department's website at www.tax.ny.gov.
The Commissioner commended Westchester County District Attorney Janet DiFiore and Assistant District Attorney Nicole Gamble for their aggressive prosecution of this case.
The defendant is scheduled to appear in court on November 2. The defendant is presumed to be innocent unless and until proven guilty.