Major World seeks major rezoning

From The Real Deal:

A disgraced car dealer from Queens who recently pleaded guilty to federal tax fraud is now looking to rezone one of his auto lots in Long Island City under the city’s affordable housing program.

Bruce Bendell, a former senior manager at the Major World family of dealerships, is looking to upzone the site of a shuttered Kia dealership on Northern Boulevard to make way for an 11-story mixed-use building with 244 apartments.

But the 64-year-old is facing up to three years in prison after he pleaded guilty in July for failing to report $3.5 million in receipts and payroll expenses on Major World’s 2009 tax forms with the Internal Revenue Service.

Chon gets away with it

From the NY Post:

One of the honchos of Spa Castle pleaded guilty Thursday to attempted tax fraud charges, while the notorious Queens bathhouse agreed to pay $2.5 million for cheating the system by under-reporting income.

Daniel Chon was sentenced to a three-year conditional discharge — and no jail time — after copping to felony attempted criminal tax fraud charges.

The College Point spa mecca, meanwhile, was convicted of criminal tax fraud charges and agreed to pay the millions in restitution and damages as part of a simultaneous civil action.

The state Attorney General’s Office brought a slew of indictment charges against Spa Castle, Chon and several members of his family last year, claiming they failed to pay $1.5 million in taxes by under-reporting revenue.

Weinstein noted, however, that Chon pleaded guilty to just one count related to attempting to not remit sales tax “in excess of $10,000.”

The cases against Chon’s siblings — Victor Chon, Stephanie Chon and Spa Castle owner Steve Chon — were all dismissed with prejudice, according to Weinstein.

“We have zero tolerance for tax cheats who leave New Yorkers to foot the bill,” Attorney General Barbara Underwood said in announcing the pleas. “The defendants orchestrated a multi-million dollar scheme to defraud taxpayers.”

Wow, this is zero tolerance?

Bid riggers busted

From the Daily News:

Two men were charged with a bid-rigging scheme to fix construction prices at a luxe Brooklyn development, Attorney General Eric Schneiderman said Thursday.

Christopher Chierchio and Anthony Molohnic were arrested and charged with colluding to avoid competition on bids for plumbing, sprinkler, and heating and air conditioning at the new luxury condo building on Baltic Street.

Chierchio — a reputed Genovese mafia soldier — was also charged with tax fraud for evading $94,094 in personal income taxes since April 2016, and could face up to 19 years in prison, according to the attorney general’s office.

Grim news for Grimm

From Capital New York:

Rep. Michael Grimm surrendered to federal authorities on Monday morning, shortly before prosecutors at the U.S. attorney's office in Brooklyn unsealed a 20-count indictment related to Grimm's ownership of a health foods store in Manhattan.

Loretta Lynch, the U.S. Attorney for New York's Eastern District, presented the indictment at a press conference in Brooklyn, detailing a tax-evasion scheme that she said was "almost breathtaking in its simplicity."

The indictment accuses Grimm of pocketing more than a million dollars in cash payments at the Upper East Side store called Healthalicious.

"When it came to his restaurant, Michael Grimm never met a tax he didn't lie to evade," Lynch said.

The charges include mail, wire, health care and tax fraud, along with two counts of perjury.

According to the indictment, "Grimm paid a large portion of Healthalicious’ employees’ wages in cash and did not report those cash wages to federal and state authorities, thereby lowering the restaurant’s payroll tax costs."

In 2013, two former Healthalicious employees filed a federal civil lawsuit against Grimm alleging the congressman did not pay them minimum or overtime wages as required by law. During a deposition hearing for the case, Grimm allegedly lied "about several material matters in connection with the lawsuit including whether he paid his employees in cash, and if he had interacted with a payroll processing company," according to prosecutors.

The indictment comes after a two-year investigation that was believed to focus on Grimm's congressional fund-raising.

Case of the counterfeiting couple

From CBS New York:

Authorities conducted a major bust of counterfeit bags, watches and sunglasses Wednesday afternoon at a small store in Lower Manhattan.

Investigators piled garbage bags containing the knockoffs at the corner of Canal and Lafayette streets.

The husband and wife team of Chen Zhibin and Yun Wei Huang – of College Point Queens – were arrested and charged with trademark counterfeiting and criminal tax fraud. They were awaiting arraignment late Wednesday afternoon.

They operated the Mendi Gift Shop at 251A Canal St.