Two partners of a Westchester accounting firm have been caught and are facing the music for their roles in a massive tax fraud scheme that cheated the IRS and New York State out of $652,883.60 in taxes.
George Sanossian, 70, of Scarsdale, New York, and Jack N. Sardis, 66, of Englewood Cliffs, New Jersey, both certified public accountants and partners of an accounting firm in Scarsdale, plead guilty to one count of conspiracy to defraud the IRS on May 29 and June 5, 2024, respectively.
According to the Informations to which Sardis and Sanossian pled guilty, the duo conspired to reduce the income tax liability of clients of their accounting firm by advising them to participate in a scheme to reduce their federal income and payroll tax liability. The scheme involved issuing checks made payable to a shell company and giving the checks to Sardis and Sanossian, who then caused the checks to be cashed at a check cashing service and returned the cash, minus a fee, to the clients.
The scheme, which was carried out from 2012 to at least April 15, 2018, involved clients in the construction industry and caused checks to be cashed in a total amount exceeding $2 million. Some clients used the cash to pay employees without reporting the cash wages on their IRS Forms 941, thereby evading both their employer contributions to Social Security and Medicare and their obligation to withhold income tax on those wages.
Sardis and Sanossian have agreed to pay restitution to the IRS and New York State, representing the additional tax due and owing as a result of their conduct, in the total amount of $652,883.60. The maximum potential sentence in these cases is five years in prison, but any sentencing of the defendants will be determined by a judge.
U.S. Attorney Damian Williams praised the outstanding investigative work of the IRS-CI, saying ‘This case serves as a reminder to all Americans that they are required to truthfully report their earnings and that criminal penalties could await those who fraudulently deceive the IRS.’ The case is a stark reminder of the consequences of tax evasion and the importance of honesty when it comes to reporting one’s income.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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