New York – In a stunning revelation, New York Attorney General Letitia James has recovered over $4.7 million from the Schulman brothers and their accountant, Howard Zapken, for their involvement in a decade-long tax evasion scheme at two NYC truck rental companies.
The investigation by the Office of the Attorney General (OAG) uncovered that Myron and Martin Schulman, owners of Able Rentals, Inc. and Abarn Equipment Corp., embezzled sales taxes from over $15 million in revenue between 2014 and 2024. Their accountant, Zapken, founded Zapken & Loeb (Z&L), which assisted in the scheme, allowing them to sidestep over $1.3 million in sales tax.
Attorney General James emphasized, ‘Businesses that cheat on their taxes are robbing New York State of funds needed for vital services like health care and education.’ The Schulmans will repay $3.9 million, while Zapken has paid more than $825,000.
The investigation revealed the Schulmans deliberately understated taxable sales by excluding credit card transactions, which comprised the majority of their business. They instructed Z&L to underreport taxable amounts, despite knowing it was fraudulent. Zapken warned his clients but continued to file false returns.
Under the settlements, the Schulmans and Zapken will repay their ill-gotten gains, with a whistleblower receiving $794,483.80. The companies’ tax returns must now be certified by a licensed accountant for the next five years. Assistant Attorney General Laura Jereski led the investigation.
RELATED: Schulman Brothers Stole $4.7M in Tax Evasion
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Key Facts
- State: New York
- Agency: NY AG
- Category: Public Corruption|White Collar Crime
- Source: Official Source ↗
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