New York – New York Attorney General Letitia James has announced the recovery of over $4.7 million from Able Rentals, Inc., Abarn Equipment Corp., and their accountant Howard Zapken for a decade-long sales tax evasion scheme.
The investigation revealed that Myron and Martin Schulman, owners of the two truck rental companies, funneled more than $15 million in revenue through underreported taxable sales to avoid over $1.3 million in sales tax. Their accountant, Zapken, founder of Zapken & Loeb, facilitated this fraud.
“Businesses that cheat on their taxes are depriving our state of the funding that provides health care, education, and other critical services,” said Attorney General James. “This case sends a clear message: my office will not tolerate tax evasion schemes.”
The Schulmans will repay $3,972,419, while Zapken has paid back $826,660.61. A whistleblower will receive $794,483.80 of the settlement funds.
The investigation found that the Schulmans used cash deposits as a basis for sales tax calculations, excluding credit card transactions. Myron Schulman instructed Zapken to further lower taxable amounts, despite warnings from Zapken about the fraudulent nature of these methods.
This case was led by Assistant Attorney General Laura Jereski, with the Taxpayer Protection Bureau handling the investigation.
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Key Facts
- State: New York
- Agency: NY AG
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
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