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 TRENTON – State
Treasurer John E. McCormac and Division of Taxation Director Robert
K. Thompson announced that Jeffre Levy and Cynthia Levy of Cherry
Hill were sentenced Wednesday in Camden County Superior Court for
failure to pay the State almost $170,000 in sales and income taxes
owed by several janitorial businesses the couple operated.
Jeffre Levy, 41, and Cynthia Levy, 48, pleaded guilty to tax fraud
on Sept. 22 before Superior Court Judge David G. Eynon. The pair were
sentenced on Tuesday to perform community service, serve probation
and to repay the State almost $400,000 in taxes, penalties and interest.
“This sentencing marks the successful conclusion of a joint
effort between the Camden County Prosecutor’s Office and the
Division of Taxation to pursue offenders who willfully evaded taxes.
The penalties make it possible for New Jersey to recoup the revenue
due to the Treasury and to honest taxpayers who play by the rules,” said
McCormac.
The criminal complaints
filed against the Levys allege that, between 1994 and 2001, the couple
collected sales tax from customers of their
janitorial companies and withheld income tax from their employees’ wages
but failed to file returns and forward the taxes to the State. A joint
investigation conducted by the Camden County Prosecutor’s Office
and the New Jersey Division of Taxation’s Office of Criminal
Investigation revealed that the Levys attempted to hide the diversion
of funds by operating through a succession of business entities: Executive
Maintenance Company, Executive Maintenance, Inc., and Executive Maintenance
Industries, Inc. The companies, all located in Cherry Hill, N.J., were
owned by one or both of the Levys.
The couple attempted to evade the payment of the taxes by operating
a business for a relatively short period of time before forming a successor
business which would also fail to comply with the tax laws of this
State.
Director Thompson said taxpayers who do not comply with tax statutes
should be aware there will be strict penalties and the State will aggressively
pursue those who do not pay their taxes.
“It is unfortunate that we still have taxpayers who ignore their
responsibility to pay their fair share while most taxpayers, sometimes
at great personal expense, take seriously the responsibility to collect
and remit their proper tax liability,” Thompson said. “We
will continue to pursue all who refuse to comply, criminally when necessary,
to protect the vast majority of taxpayers who choose to comply.”
The Levys were
sentenced to work community service detail in Camden County under
the Sheriff’s Labor Assistance Program (SLAP). Jeffre
Levy was sentenced to 3 years probation and 60 days in the SLAP Program.
Cynthia Levy was sentenced to 2 years probation and 30 days in the
SLAP Program. In addition they both signed consent judgments requiring
them to pay almost $400,000 in taxes, penalties and interest.
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