Manhattan Restaurateur Pleads Guilty to Tax Evasion – He Should have hired SELIG & Associates

He concealed more than $2 Million in Business Income; Used Funds on Luxury Cars, High End Shopping and other Personal Expenses

The owner of a former New York City restaurant pleaded guilty to tax evasion today, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, and Chief of Internal Revenue Service- Criminal Investigation (IRS-CI) Jonathan D. Larsen.

“The defendant funded his lavish lifestyle by failing to pay legally obligated taxes thus causing harm to all Americans,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “We remain committed to prosecuting tax criminals who refuse to pay their fair share.”

“As he admitted in court, restaurateur Adel Kellel cooked his books for years, skimming money from his restaurant and salting it away in personal accounts or using it for personal expenses,” said U.S. Attorney Geoffrey S. Berman for the Southern District of New York. “His scheme was a recipe for making millions in unreported income, but now he will have to pay for his gluttony.”

“When Mr. Kellel chose to hide millions of dollars from the IRS, he unfairly shifted the tax burden to honest American taxpayers,” said IRS-CI Chief Jonathan D. Larsen. “As we start the tax filing season, this is a stark reminder of the serious consequences of tax evasion, including potential imprisonment. IRS-CI will continue to be relentless in our mission to root out tax fraud.”

According to the Information and statements made in court, in 2011, Adel Kellel was the President and a minority owner of K&H Restaurant Inc. (K&H), which operated Raffles Bistro (Raffles), a restaurant located at a New York City-based hotel. From 2012 through 2015, Kellel was the sole owner of K&H. K&H’s gross receipts consisted primarily of: (1) credit card payments by Raffles customers; (2) cash payments by Raffles customers; and (3) check payments by the hotel for services that Raffles provided to hotel guests and patrons, including room service, banquets, and catering. 

From 2011 through 2015, Kellel concealed a substantial portion of K&H’s gross receipts by not fully reporting the cash received from Raffles’ customers. Kellel further hid the gross receipts by depositing cash into personal bank accounts, by spending funds directly on personal expenses, and by diverting checks paid by the hotel to K&H into non-business bank accounts that Kellel hid from his accountants. During this time, Kellel diverted more than 150 hotel checks, totaling more than $2 million, to more than a dozen bank accounts. 

Kellel used the diverted income for personal expenses, including: overseas transfers; condominium fees; rent for a high-end Manhattan apartment; college tuition payments from his children; shopping at luxury retailers, such as Hugo Boss and Saks Fifth Avenue; payments for luxury cars manufactured by Mercedes, Porsche, and Maserati; and to pay for domestic and international travel. 

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Free Consultation Federal Tax Practitioner, CPCU and Attorney. Practicing before the Internal Revenue Service and New York State Department of Taxation and Finance. We provide our Clients with successful Tax Representation, Insurance Audit Advocacy and Tax Planning Services. Legally privileged consultations available Monday through Friday in our New York City offices. 

Tax Representation Specializing in unpaid Income, Sales and Payroll taxes. We negotiate excellent Payment Plans, Audits, Offers in Compromise, and all other tax matters. Expedited service. Missing Tax Returns prepared and filed within 48 hours. Proven results. Corporations, S-Corps and LLC’s. For immediate assistance call (212) 974-3435.  

Construction Company Owners We help Business Owners with NYSIF Premium Assessments and Workers Compensation Insurance Audits. Specializing in Employee Misclassification, Unreported Income, Application Fraud, Experience Rating, and other W/C violations. Schedule a Free legally privileged consultation today.

Tax Advisors Our strategic Tax Planning and Advisory services are designed to help Business Owners significantly reduce their income tax liability in 2020. Schedule a Free Consultation by calling or contacting us online.

NUTS & BOLTS Understanding Workers Comp Premium Assessments

Solve Your Tax Problems in 7 minutes. 

"A Do it Yourself Guide to Solving Tax Problems" 

(without an expensive accountant or attorney) 

This E-Book teaches you how to solve IRS tax problems in just seven minutes. Our instructional booklet is easy to read and straight to the point. With this information and our problem solving techniques, you can solve your IRS tax problem without having to hire an expensive accountant or attorney. In just seven minutes you will learn what to do, and how to do it. Topics include preparing and filing missing tax returns, establishing IRS payment plans, preparing and filing Offers in Compromise, requesting Penalty Abatements and obtaining Currently Not Collectable status. 

When an insurance company writes a policy for an employer, the classification rate, and assessment are all used to calculate premium. The insurance carrier requests an estimate of total annual payroll from the employer. The premium cost is the classification rate for a classification multiplied by every $100 of payroll, plus the assessment cost. Since the premium is based in part on payroll that is estimated at the beginning of the policy year, the final premium could be more or less, depending on the actual payroll at the end of the policy year. Adjustments are made at that time, resulting in either a refund or an additional charge. An employer who understates their payroll at the beginning of the policy may receive a smaller bill for a year or two, but once the policy is audited, the error will be caught and the employer will receive a large bill to pay for these "back" premiums. The employer is liable for all outstanding premium amounts that the employer owes, even if the policy has already been cancelled. If the understatement was intentional, it could be classified as fraud, a class E felony. 

Audit and NYSIF Representation Insurance Advocate CPCU and Attorney. We represent Construction Companies, Restaurants and Businesses before the NYSIF, Department of Labor, IRS and New York State Department of Taxation and Finance. Specializing in Workers Compensation Audits and Premium Disputes including employee misclassification, underreporting, failure to keep accurate payroll records, and other serious violations. To schedule a legally privileged consultation in our New York City offices call (212) 974-3435 or contact us through our Online Action Form @ TRUETAXHELP.COM

IRS and NYS Tax Representation We successfully resolve IRS and New York State tax problems. Specializing in unpaid and delinquent income, sales and payroll taxes. We represent Construction Companies, Restaurants, Businesses and Individuals and negotiate excellent payment plans, audit resolution, offers in compromise, and other large-dollar tax matters. Do you have unfiled tax returns? We can have them prepared and filed for you within 48 hours, guaranteed. To speak with a Federal Tax Practitioner and Attorney call (212) 974-3435 or contact us through our Online Action Form @ TRUETAXHELP.COM

Solve Your Tax Problems in 7 minutes. 

"A Do it Yourself Guide to Solving Tax Problems" 

(without an expensive accountant or attorney) 

This E-Book teaches you how to solve IRS tax problems in just seven minutes. Our instructional booklet is easy to read and straight to the point. With this information and our problem solving techniques, you can solve your IRS tax problem without having to hire an expensive accountant or attorney. In just seven minutes you will learn what to do, and how to do it. Topics include preparing and filing missing tax returns, establishing IRS payment plans, preparing and filing Offers in Compromise, requesting Penalty Abatements and obtaining Currently Not Collectable status. 

You have the right to be represented during a Workers Compensation Insurance Audit. Employee Misclassification, Underreporting, Unreported Income, and Failure to Keep Accurate Payroll Records

SELIG & ASSOCIATES We successfully solve IRS and New York State Tax problems, including Workers Compensation Audits, NYSIF Premium Disputes, suspended Drivers Licenses and Passports. Specializing in Workers Compensation, Payroll, Sales and Income Tax representation for Businesses, Individuals, Restaurants and Construction Companies. Civil and Criminal Workers Compensation representation: Audits, NYSIF Examinations, Premium Disputes, Employee Misclassification, Underreporting, Unreported Income, and Failure to Keep Accurate Payroll Records.  We negotiate excellent Payment Plans, Audit Dispute Resolution, Offer in Compromise, and other large dollar issues.

Application Fraud

Applicant misrepresents having had prior insurance with NYSIF to avoid paying past due premium. Applicant misrepresents the nature of business, number of employees and/or payroll.

Premium Fraud

Policyholder misrepresents amount of payroll, number of employees and/or nature of employment.

Broker Fraud

Broker misrepresents client's nature of business with or without the knowledge of policyholder.

Certificate Fraud

Business presents forged certificate of workers' compensation insurance to obtain mostly subcontracting jobs while workers remain uninsured, leaving the certificate holder liable.

Audits & Premium Disputes

Call now (212) 974-3435

A poorly handled Workers Compensation Audit can cost your Business Hundreds of Thousand of Dollars. For immediate assistance call Selig & Associates

SELIG & ASSOCIATES We successfully settle Workers Compensation Audits and NYSIF Premium Disputes in the shortest amount of time, and at the least cost to the Business-owner. 

SELIG & ASSOCIATES Specializing in Construction Company Audits, Restaurant Audits, Payment Plans, Department of Labor Audits, Appeals, and unpaid IRS Payroll and New York State Sales taxes.

SELIG & ASSOCIATES Civil and Criminal Workers Compensation representation includes: Audits, NYSIF, Premium Disputes, Employee Misclassification, Underreporting, Unreported Income, and Failure to Keep Accurate Payroll Records. 

SELIG & ASSOCIATES For more information about our services, or to personally consult with David P. Selig, CPCU and Bradley H. Dorin, Esq. call us directly or contact us online.

5 Arrested. Cash, Business Records, Computers, Untaxed Cigarettes and Cigarette-Rolling Machines Seized

The New York State Department of Taxation and Finance, along with the County Sheriff and Orange County District Attorney, announced that five individuals were charged with possessing untaxed cigarettes. New York State Tax Department investigators, assisted by the Sheriff’s Office, executed six search warrants at multiple roll-your-own cigarette shops across the county on September 26. “Businesses that evade their tax obligations deprive the communities where they operate of tax revenue for vital services and gain an unfair advantage over honest merchants,” said New York State Commissioner of Taxation and Finance Michael Schmidt. “We thank the Sheriff’s Office and the y District Attorney’s Office for partnering with us on this case, as we continue to work with all levels of law enforcement to root out the sale of untaxed cigarettes.”

Selig & Associates

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 Workers Compensation Audits, NYSIF Premium Disputes, suspended Drivers Licenses and Passports. 

Specializing in Workers Compensation, Payroll, Sales and Income Tax representation for Businesses, Individuals, Restaurants and Construction Companies. 

Civil and Criminal Workers Compensation representation includes: Audits, NYSIF Examinations, Premium Disputes, Employee Misclassification, Underreporting, Unreported Income, and Failure to Keep Accurate Payroll Records. 

We negotiate excellent Payment Plans, Audit Dispute Resolution, Offer in Compromise, and other large dollar issues. Do you have Unfiled Tax Returns? We can have them prepared and filed for you within 48 hours, guaranteed. 

For more information about our services, or to schedule an appointment with David P. Selig, CPCU and Bradley H. Dorin, Esq., please call us directly or contact us online. 

Same day and Emergency Appointments are available Monday through Friday in our New York City offices. 

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

A poorly handled Workers Compensation Audit can cost your Business Hundreds of Thousand of Dollars. For immediate assistance call Selig & Associates

We successfully settle Workers Compensation Audits and NYSIF Premium Disputes in the shortest amount of time, and at the least cost to the Business-owner. 

Specializing in Construction Company Audits, Restaurant Audits, Payment Plans, Department of Labor Audits, Appeals, and unpaid IRS Payroll and New York State Sales taxes.

Civil and Criminal Workers Compensation representation includes: Audits, NYSIF, Premium Disputes, Employee Misclassification, Underreporting, Unreported Income, and Failure to Keep Accurate Payroll Records. 

For more information about our services, or to personally consult with David P. Selig, CPCU and Bradley H. Dorin, Esq. please call us directly or contact us online.

Doctor Sentenced to Prison for Tax Evasion (he should have hired Selig & Associates)

He Tried to Thwart IRS Collection Efforts

On October 2^nd 2019 another medical doctor was sentenced to 12 months and one day in prison for evading the payment of his income taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney R. Andrew Murray. According to documents and information provided to the court, from May 2012 to December 2015, the good doctor took several actions to evade payment of federal income taxes, interest, and penalties he accrued over six previous tax years. The sawbones ignored a duly-issued Internal Revenue Service (IRS) summons to appear before an IRS collections officer with his pertinent financial records.  After the IRS sought and received a court order compelling him to comply with the summons, he provided minimal information and omitted records related to any financial accounts and assets he may have had. The doctor also hid his assets from the IRS by depositing his paychecks on a reloadable debit card and having wages issued in the name of a company he controlled rather than directly to himself.  

 212.974.3435

TRUETAXHELP.COM

SELIG & ASSOCIATES 

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

We successfully solve IRS and New York State Tax problems, including Workers Compensation Audits, NYSIF Premium Disputes, suspended Drivers Licenses and Passports. 

Specializing in Workers Compensation, Payroll, Sales and Income Tax representation for Businesses, Individuals, Restaurants and Construction Companies. 

Civil and Criminal Workers Compensation representation includes: Audits, NYSIF Examinations, Premium Disputes, Employee Misclassification, Underreporting, Unreported Income, and Failure to Keep Accurate Payroll Records. 

We negotiate excellent Payment Plans, Audit Dispute Resolution, Offer in Compromise, and other large dollar issues. Do you have Unfiled Tax Returns? We can have them prepared and filed for you within 48 hours, guaranteed. 

For more information about our services, or to schedule an appointment with David P. Selig, CPCU and Bradley H. Dorin, Esq., please call us directly or contact us online. 

Same day and Emergency Appointments are available Monday through Friday in our New York City offices. 

212.974.3435

TRUETAXHELP.COM

SELIG & ASSOCIATES 

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

In addition to the term of imprisonment, U.S. District Judge Conrad ordered the despondent doctor to serve one year of supervised release and to pay a $10,000 fine. Restitution will be ordered at a later date.

Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Murray thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider and Assistant Chief Todd Ellinwood of the Tax Division, who are prosecuting the case.

Workers Comp Misclassification. Defendants Charged with Insurance Fraud, Grand Larceny and Scheme to Defraud.

Manhattan District Attorney and New York City Department of Investigation Commissioner announced the indictment of another construction company and six of its employees for misclassifying workers as lesser-skilled, underpaying them, and falsifying information about payroll and employees. 

We successfully solve IRS and New York State Tax problems, including Workers Compensation Audits, Premium Disputes, suspended Drivers Licenses and Passports. 

The defendants are charged in a New York State Supreme Court indictment with Insurance Fraud in the Second and Third Degrees, Grand Larceny in the Third Degree, and Scheme to Defraud in the First Degree, among other charges. 

212.974.3435

TRUETAXHELP.COM

Misclassifying workers as lesser-skilled is a common way that employers steal from their employees, and I thank our Construction Fraud Task Force partners for their continued commitment to protecting the workers who put their lives on the line every day." The indictment follows a joint investigation led by the Manhattan District Attorney’s Office’s Construction Fraud Task Force and DOI, with additional assistance by NYSIF.  In addition to wage theft, the defendants also filed false payroll information with NYSIF in order to lower their workers' compensation insurance premiums. 

By under-reporting the company's expected aggregate payroll underpaid NYSIF approximately $380,000 for the insurance coverage it received. In addition, by misclassifying ironworkers as concrete laborers—who are insured by NYSIF at a lower risk factor— the construction company fraudulently lowered their premium for the insurance year 2016-17. In total, they underpaid NYSIF by approximately $410,000 by under-reporting payroll and misclassifying workers. 

212.974.3435

TRUETAXHELP.COM

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

Call now (212) 974-3435

We successfully solve IRS and New York State Tax problems, including Workers Compensation Audits, Premium Disputes, suspended Drivers Licenses and Passports. 

Specializing in Workers Compensation, Payroll, Sales and Income Tax representation for Businesses, Individuals, Restaurants and Construction Companies. 

Civil and Criminal Workers Compensation representation includes: Audits, NYSIF Premium Disputes, Employee Misclassification, Underreporting, Unreported Income, and Failure to Keep Accurate Payroll Records. 

We negotiate excellent Payment Plans, Audit Dispute Resolution, Offer in Compromise, and other large dollar issues. Do you have Unfiled Tax Returns? We can have them prepared and filed for you within 48 hours, guaranteed. 

For more information about our services, or to schedule an appointment with David P. Selig, CPCU and Bradley H. Dorin, Esq., please call us directly or contact us online. 

Same day and Emergency Appointments are available Monday through Friday in our New York City offices. 

212.974.3435

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

Trucking Company President Charged with Violating Workers Compensation Law (he should have hired SELIG & Associates)

The investigation was a joint effort conducted by NYSIF’s Division of Confidential Investigations, the Department of Financial Services and the Queens County District Attorney’s Office.

Authorities arrested the owner of a Queens trucking company and one of his workers for falsifying documents that led to more than $216,000 in alleged workers’ compensation fraud against the New York State Insurance Fund. The Queens District Attorney’s Office arrested the president of a Trucking Company and charged him with fraudulent practices in violation of the Workers’ Compensation Law and offering a false instrument for filing, both felonies. Investigators said the Queens resident allegedly underreported payroll for his trucking company from July 2012 through July 2015 to avoid paying the correct insurance premium to NYSIF.  The Trucking Company owner allegedly claimed he worked alone in his business and had no employees. The investigation revealed the Trucking Company owner employed several trucks and drivers, whom he paid in cash, expenses allegedly listed in accounting ledgers as fuel costs for his business. As a result, he allegedly underpaid NYSIF by more than $158,000 in insurance premiums.

  

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

TRUETAXHELP.COM

212.974.3435

We successfully solve IRS and New York State Tax problems, including suspended Drivers Licenses, Passports, Workers Compensation Audits and Premium Disputes.

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

We negotiate excellent Payment Plans, Audit Dispute Resolution, 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. 

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

If you disagree with the insurance auditor’s assessment, we can file a formal dispute and temporarily stop collections. During this same period, we’ll address the disputed issues and negotiate an acceptable resolution. Call 212.974.3435 for a FREE consultation. 

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

212.974.3435 Truetaxhelp.com

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. 

212.974.3435

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