|FOR IMMEDIATE RELEASE||
CONTACT: Matt Golden
|May 21, 2004||
Husband and Wife Face Criminal Charges for Theft of State Taxes
TRENTON – New Jersey Treasurer John E. McCormac announced that Jeffre and Cynthia Levy of Cherry Hill, N.J., have been charged with tax evasion for failing to pay the State almost $170,000 in sales and income taxes owed by several janitorial businesses the couple operated.
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 penalties for tax fraud are severe,” said Treasurer McCormac. “Businesses that collect sales tax or withhold income tax from wages are acting as trustees for the State of New Jersey. When business owners violate that trust by keeping the money instead of turning it over to the State, they are committing a criminal offense.”
Levys, accompanied by their attorney, turned themselves in at Cherry
Hill Police Headquarters late last week and were released with summonses.
Both face two second-degree charges, each carrying a maximum 10-year
prison sentence; one third-degree charge, carrying a maximum five-year
prison term; and fines of up to double the amount of tax evaded.