Oceanside Store Operator Sentenced For Stealing Sales Taxes Collected At Convenience Stores

Attorney General Spitzer and State Department of Taxation and Finance Commissioner Arthur J. Roth today announced the sentencing of an Oceanside man for stealing more than $150,000 in sales taxes that he collected but failed to pay the state.

Pearo Muhammad, 44, of 2835 Davis St., was sentenced in Nassau County Court before Judge Joseph C. Calabrese. Mohammad, who previously pled guilty to Grand Larceny in the Third Degree, a Class D felony, was sentenced to five years probation, ordered to pay a $25,000 fine and $150,000 in restitution. The court also required Muhammad to execute a confession of judgment in the amount of $297,631.60, which included the interest and penalties Mohammad owed to the Tax Department.

"While the majority of New York business owners comply with state laws and regulations, there are those who break the law for their own gain," Attorney General Spitzer said. "My office will continue to work with the Department of Taxation and Finance to prosecute those business owners who fail to comply."

State Taxation and Finance Commissioner Arthur J. Roth said: "Working with prosecutors across the State, we intend to track down tax evaders in order to ensure the integrity of the tax system and ensure that honest taxpayers do not pay more than their fair share."

The charges stem from Mohammad's failure to pay the state sales taxes he collected from customers at the two Lily's Food Corp. stores he operated at 403 Merrick Road and 3015 Long Beach Road in Oceanside. Between June of 1995 and February of 2001, Mohammad under reported his taxable sales by more than $1.5 million. In an attempt to cover up his fraud, he then submitted false tax returns to the state.

The case was handled by Assistant Attorney General Viola I. Abbitt, Deputy Bureau Chief of the Albany Office of the Attorney General's Criminal Prosecution Bureau, with the assistance of Investigators Lester Dier and William Cullen from the Attorney General's Investigations Bureau. Richard Gambino, Dennis Gillooly and Camille Mule of the New York State Tax Department also assisted on the case.

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