TRENTON —Attorney General Peter
C. Harvey today announced that a joint-agency
investigation targeting the willful failure
to pay state motor fuel taxes has resulted
in a Hudson County businessman pleading
guilty to charges of cheating the State
of New Jersey out of more than $270,000
in tax revenue.
“Citizens
who play by the rules cannot and will
not be forced to shoulder the burden of
lawless tax cheats who evade the system,”
Attorney General Harvey said. “This
investigation demonstrates the resolve
and forward thinking of the Division
of Criminal Justice and the Division
of Taxation as they undertake concerted
efforts to target tax cheats. Make no
mistake, we intend to recoup and return
missing and due and owing tax dollars
to our treasury and to New Jersey’s
honest taxpayers.”
“New
Jersey taxpayers should know they must
comply with the State Tax statutes or
face consequences. To that end, I have
supported the Division of Taxation since
my first day in Office and have encouraged
the cooperative relationship that is obviously
working with the Division of Criminal
Justice," said State Treasurer John
E. McCormac.
According to Vaughn L. McKoy, Director,
Division of Criminal Justice, Manuel Mier,
50, Irvington Avenue, Hillside, Union
County, pleaded guilty before Hudson County
Superior Court Judge Kevin G. Callahan
to charges of failure to file New Jersey
Motor Fuel tax returns and failure to
turn over taxes. As a result of the Jan.
20 guilty plea, Meir faces up to five
years in state prison and a fine of up
to $15,000. Additionally, the Court will
order the payment of $417,685 in back
taxes, interest and penalty. Meir is scheduled
to be sentenced on April 15.
“Tax
payment and the payment of mandatory collected
fees is an obligation of business ownership.
The State’s services to citizens
depend upon receiving revenues from business
taxes. The Division of Taxation, in concert
with the Division of Criminal Justice,
will continue to target tax delinquents
in order to collect any and all due and
owing tax monies,” said Robert K.
Thompson, Director, Division of Taxation.
The criminal Accusation charged that Mier,
the owner/operator of three corporations
doing business as 76 Tonnelle Friendly
Service LTD (a service station located
at 7514 Tonnelle Ave., Hudson County),
Leticia, Inc. and L&M Services, Inc.,
failed to file and remit more than $95,909
in motor fuel taxes collected through
the sale of gasoline and diesel fuels
from September, 1997 through February,
2000. Additionally, the Accusation charged
that Mier and his wife maintained an ownership
interest in two waste disposal trucking
companies located in North Bergen and
Newark. The companies, incorporated as
Leticia, Inc. and L&M Services, Inc.,
also failed to remit more than $181,199
in use taxes to the State Treasurer. After
seizing various business records via search
warrants, Division of Taxation investigators
and auditors conducted an audit of the
records and determined that Mier and his
corporations failed to file required tax
returns and Seller-User of Special Fuels
Reports and to submit due and owing motor
fuel excise tax revenues. The New Jersey
Motor Fuel Excise Tax applies to service
station sales of diesel motor fuel which
is taxed at the rate of 13 ½ cents
per gallon of diesel fuel.
“Anyone
who operates a business in the State of
New Jersey and who intentionally fails
to submit motor fuel tax revenues will
be investigated by the Division of Taxation
and prosecuted by the Division of Criminal
Justice. We will not tolerate the business
of cheating the state and its citizens
out of tax monies,” said Criminal
Justice Director McKoy.
Attorney General Harvey noted that the
Division of Criminal Justice has established
a toll-free “Corruption TipLine”
for the public to report corruption, financial
crime and other illegal activities.
The statewide “Corruption
TipLine” is: 1-866-TIPS-4CJ.
Additionally, the public can log on to
the Division of Criminal Justice Web Page
at www.njdcj.org to electronically report
suspected wrongdoing. Any information
received via the Division of Criminal
Justice “Corruption TipLine”
will remain confidential.
Director Thompson said that anyone with
information about unscrupulous tax preparers,
or any type of tax fraud, are encouraged
to contact the New Jersey Division of
Taxation’s “Citizens Against
Tax Cheats or CATCH” program.
The hotline number is: (609) 292-6400.
Information can also be mailed to the
New Jersey Division of Taxation, 50 Barrack
Street, P.O. Box 190, Trenton, NJ 08695-0190,
Attention: Citizens Against Tax Cheats.
The investigation was coordinated by the
Division of Taxation Office of Criminal
Investigations and the Division of Criminal
Justice - Financial Crimes Bureau. Supervising
Deputy Attorney General Terrence Hull
of the Division of Criminal Justice -
Financial Crimes Bureau prosecuted the
case. State Investigator Scott Romanowski
of the Division of Criminal Justice -
Major Financial Crimes Bureau and Investigator
Frank Papp assigned to the Division of
Taxation Office of Criminal Investigations
conducted the investigation.
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