2 NY Contractors Arrested 4 Workers Compensation Crime! Selig & Associates. Workers Comp Audits, Criminal & Audit Dispute Representation

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In December a contractor applied for a building permit from the city and submitted a document indicating he had no employees and was not required to purchase workers’ compensation insurance.

The investigation determined the contractor actually had several employees working on the roofing project and New York state law requires employers to provide workers’ compensation insurance for any employees they hire.

Two New York state contractors were arrested on charges they filed fraudulent applications for a roofing project as part of a workers’ compensation fraud scheme.

One contractor was charged with offering a false instrument for filing in the first degree, a felony, and the workers’ compensation crime of failure to secure compensation, a misdemeanor.

The other contractor was charged with offering a false instrument for filing in the first degree, a felony.

An investigation by Catherine Leahy Scott, New York state workers’ compensation fraud inspector general, found that in late October and November 2018, the City Engineering Department Division of Building and Zoning Enforcement issued stop work orders for a residential roofing project for lack of a building permit.

In December a contractor applied for a building permit from the city and submitted a document indicating he had no employees and was not required to purchase workers’ compensation insurance. The investigation determined the contractor actually had several employees working on the roofing project and New York state law requires employers to provide workers’ compensation insurance for any employees they hire.

Subsequent to  being denied a permit by the city, one of the contractors applied for a permit for the same project, indicating his company, which has workers’ compensation insurance, would perform the work. 

The investigation determined the contractor’s company continued to perform the work on the roof, when in reality, the insured contractor's company was not involved with the project.

Accordingly, one contractor [who failed to hire Selig & Associates] plead guilty to criminal possession of a forged instrument, id est. a falsified workers’ compensation certificate of insurance.

“These two contractors, one of whom with a recent history of fraud, chose a course of deception over honest business practices,” said Leahy Scott in a press release issued by her office. “My office and our local and state enforcement partners will not tolerate any corruption of a critical benefits program meant to protect honest hard-working employees.”

Defendants are presumed innocent until proven guilty in a court of law.

NY Workers Compensation Audit, Criminal & Dispute Representation

If you’ve been audited and are under criminal investigation, call David P. Selig, CPCU and Bradley H. Dorin, Esq. to discuss your case in confidence.   

We take a practical approach to problem solving and strive to obtain the best possible outcome for our clients

212.974.3435 Truetaxhelp.com

We successfully solve IRS and New York State Tax problems, including suspended Drivers Licenses and suspended Passports.

Specializing in large dollar Workers Compensation Audits, Payroll, Sales and Income Tax representation for Businesses, Individuals, Medical Practices, Restaurants and Construction Companies. 

We negotiate excellent Payment Plans, Audits, Offer in Compromise, and most other tax issues. Do you have Unfiled Tax Returns? We can have them prepared and filed for you within 48 hours, guaranteed. 

Meet and consult with us Personally. Same day and Emergency Appointments are available Monday through Friday in our New York City offices. 

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Our mission is to win every Tax and Workers Comp case and to faithfully serve our clients with integrity, honesty and purpose

Man Sentenced for Tax Evasion and Possession of Unregistered Firearm (Failure to File Tax Returns sent him to the BIGHOUSE)

An angry 2^nd amendment advocate was sentenced to 24 months in prison for tax evasion and possession of an unregistered firearm. The gun totting tax evader owned and operated a holistic medicine business, which he operated out of his home. The sad eyed sure-shot admitted that from 2008 through 2014 he had earned more than $2.7 million in gross receipts, but failed to file income tax returns for those years and evaded the payment of approximately $678,000 in income tax. 

Selig & Associates 

We take a practical approach to problem solving and strive to obtain the best possible outcome for our clients

212-974-3435

We successfully solve IRS and New York State Tax problems, including suspended Drivers Licenses and Passports. Specializing in large dollar Payroll, Sales and Income Tax Representation for Individuals, Professional Practices and Businesses. 

We negotiate excellent Payment Plans, Audits, Offers in Compromise, Payroll & Trust Fund Recovery Penalties, and most other tax issues. Do you have Unfiled Tax Returns? We can have them prepared and filed for you within 48 hours, guaranteed. Same day and emergency appointments are available Monday through Friday in our New York City office. 

To schedule a Free and Legally Privileged Consultation with a Federal Tax Practitioner and Attorney contact us Online

or Call (212) 974-3435

Old Saybrook man lied about Hurricane Sandy damage to obtain $1.6 million in disaster loans, prosecutors say

An Old Saybrook marina owner pleaded guilty Monday to lying about damage his property sustained during Hurricane Sandy to obtain more than $1.6 million in disaster relief loans from the Small Business Administration.

Scott Sundholm 39, waived his right to be indicted and pleaded guilty Monday to one count of making false statements to obtain the loans before U.S. District Judge Michael Shea in Hartford federal court.

Sundholm owns and operates S&S Marine in Old Saybrook and applied for a disaster loan from the Small Business Administration in 2016 for damage he claimed the property sustained during Hurricane Sandy in 2012, U.S. Attorney John Durham said.

The tidal surge during the storm at the marina allegedly damaged floating boat docks, a boat ramp, a metal shop building and a bath house, Sundholm claimed at the time. He also claimed he rebuilt the bath house “the same size and quality” after the storm.

In reality, though, the marina had no floating boat docks or ramps before the storm and Sundholm had demolished the previous bath house in September 2012 — more a month before Hurricane Sandy, Durham said.

Hurricane Sandy devastated the Northeast when it made landfall at the end of October 2012 and is considered the second costliest storm in U.S. history after it caused an estimated $75 billion in physical damage and business losses, federal officials concluded.

Federal lawmakers later allocated hundreds of millions of dollars to the Small Business Administration to offer disaster relief assistance and small business loans to home and business owners in the wake of the storm and the administration totaled nearly $114 million in verified losses through the program in Connecticut, according to government data.

Long delays and rejections plagued the SBA’s first round of assistance processing in the immediate aftermath of the storm, however, so lawmakers reopened the program for Sandy victims in late 2015 and into 2016, when Sundholm made his application for a business loan.

Sundholm has since paid full restitution of more than $1.65 million to the Small Business Administration, Durham said.

Sundholm is scheduled to be sentenced Sept. 6 and faces a maximum term of two years in prison and a fine. He has been released until the sentencing, Durham said.

Insurance Issues? Call David Selig CPCU and Attorney Bradley Dorin at (212) 974-3435

Helpful We specialize in difficult situations. To schedule a confidential consultation with a CPCU, Claims Adjuster and Attorney please call (212) 974-3435 today. 

Effective We assist builders, businesses, nightclubs, schools and religious institutions with specialty insurance coverage and large dollar first-party claims, including Environmental issues, Active Shooter and Workplace Violence Protection, Cyber and Employment Practices Liability Insurance. 

Skillful We settle first-party property damage claims for top dollar and resolve all residential and commercial claims, including Business Interruption, Burglary, Fire, Windstorm and Water Damage. 

Local Appointments are scheduled Monday through Thursday between the hours of 9:00 a.m. and 5:00 p.m. and on Fridays between 9:00 a.m. and 3:00 p.m. 

Attorney Pleads Guilty to Tax Evasion – He should have hired SELIG & Associates

He Prepared Tax Returns for Clients and Omitted Over $1.5 Million in Income on His Own Tax Returns  A former attorney, who also prepared tax returns for clients, pleaded guilty to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and Josh J. Minkler, U.S. Attorney for the Southern District.

Scott C. Cole, 54, pleaded guilty to one count of tax evasion for his multi-year effort to evade the payment of taxes and penalties on income he failed to report on his 2002 tax return.

According to the Superseding Indictment and court filings, Cole was an attorney and preparer of tax returns. As the result of Internal Revenue Service (IRS) audits of Cole’s 2001 and 2002 tax returns, the Tax Court and the United States Court of Appeals determined that Cole owed over $1,000,000 in taxes and penalties, stemming from Cole’s fraudulent omission of over $1.5 million of income from his individual tax returns for those years.  From 2011 through 2017, when the IRS sought to collect those taxes, Cole took various steps to evade payment of his tax debt. His efforts included opening bank accounts in the names of nominees, such as family members, directing payment for legal and tax preparation services performed by him be made payable to nominee companies he controlled, paying personal bills from bank accounts maintained in the names of nominees, and dealing extensively in cash and money orders. Cole also prepared tax returns for clients that omitted his name as the paid preparer of those tax returns, a violation of the Internal Revenue Code and related regulations.  Because of Cole’s acts of evasion, the IRS collected less than $3,000 of the total tax debt Cole owed for the 2001 and 2002 tax years.

Cole resigned from the bar following the filing of a complaint by the Disciplinary Commission in 2014, which charged Cole with the filing of fraudulent tax returns with the IRS and the State for the 2001 and 2002 tax years.

U.S. District Judge Jane Magnus-Stinson, who presided over Cole’s guilty plea yesterday, is expected to schedule Cole’s sentencing for late summer 2019.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Minkler commended special agents of IRS-Criminal Investigation, who investigated the case, the IRS Revenue Agents, who conducted the underlying audits, and the prosecutors on the case, Assistant United States Attorney James M. Warden from the Southern District and Assistant Chief Stanley J. Okula, Jr. of the Tax Division.

Civil and Criminal Tax Representation 

Consult with a Federal Tax Practitioner and Attorney today. *Same day and emergency appointments available. For immediate assistance call (212) 974-3435 or contact us online.  

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Our New York City office is conveniently located and easily accessible by car, train, bus and subway. Call us directly at (212) 974-3435 or contact us online.  

Restaurants with Unpaid Sales Taxes 

We negotiate excellent installment agreements and specialize in audit representation, unfiled tax returns and all Department of Labor issues. To schedule a Free Consultation call (212) 974-3435 or contact us online.  

Businesses with Payroll Tax Problems 

We negotiate excellent installment agreements and specialize in audit representation, tax compliance and Workers Compensation insurance audits. To meet with us personally call (212) 974-3435 or contact us online. 

 Commercial Insurance Assistance 

Including liquor liability, active shooter and workplace violence protection, cyber insurance, sexual harassment and employment practices liability insurance (“EPLI”). For more information call us directly at (212) 974-3435.

 Assistance with Insurance Claims

We settle commercial property insurance claims, including business interruption, burglary, fire, windstorm and water damage. To discuss your claim with an Attorney and Public Adjuster call (212) 974-3435 today.