A father and son are accused of illegally pocketing hundreds of thousands of dollars from their Hollis car dealerships.
Yunas Khan, 52, and his son Tabraiz Khan, 27, head Horse Power Sales on Jamaica Avenue and Car Palace on 183rd Street. They are charged with $500,000 in state sales tax theft for allegedly under-reporting sales and neglecting to turn over sales tax to the state, according to District Attorney Richard Brown.
“Sales taxes are meant for the public treasury, not the pockets of businessmen,” Brown said.
By defrauding the state 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,” Brown said.
Between 2007 and 2010, Horse Power Sales allegedly reported taxable sales at roughly $2 million, with a tax liability of about $200,000. However, a state DMV review shows sales at just over $8 million, resulting in a tax liability of about $700,000.
The Khans allegedly collected the missing nearly $500,000 and similarly pocketed roughly $75,000 from Car Palace sales.
The two from Melville, Long Island face varying counts of grand larceny, criminal tax fraud, falsifying business records and scheme to defraud. The dealerships are additionally charged with the same counts.
They are currently being held, pending arraignment in criminal court.
“The defendants have shown a callous disregard for the tax laws, stealing from their customers and the state of New York, alike,” said Thomas Mattox, the New York State Commissioner of Taxation and Finance.