New York State Department of Taxation and Finance Commissioner Thomas H. Mattox announced that Richard Kogel has been arrested on a felony sales tax charge.
Kogel, 48, of Branglebrink Road, Saint James, NY, was charged with Grand Larceny in the First Degree, a class B felony. He is the owner of K.A.R. Ltd., and doing business as Rooms Unlimited.
An investigation by the Tax Department and the Suffolk County District Attorney's Office revealed that Kogel failed to remit to the State more than $1.4 million in sales tax collected from his customers between June 2007 and May 2011.
Kogel was released on his own recognizance. His next court appearance is scheduled for October 16 in Suffolk County First District Court.
"When it comes to sales tax evasion, we will aggressively use the Department's enforcement powers to ensure that businesses comply with all of their tax obligations," said Commissioner of Taxation and Finance Thomas H. Mattox. "I thank Suffolk County District Attorney Thomas Spota and his staff for their cooperation in this case."
"When a business evades its sales tax obligations, honorable merchants operate at a competitive disadvantage and taxpayers are victimized," said Suffolk County District Attorney Thomas Spota. "Since 2005, our specialized Tax Crimes Unit has worked with the State Tax Department to investigate and prosecute tax cheats in Suffolk County. This partnership is responsible for the return of approximately eight million dollars to the state and county treasuries."
The defendant is presumed to be innocent unless and until proven guilty.