Nassau Auto Repair Shop Owner Pleads Guilty To Tax Fraud

FREEEPORT, NY — Two Long Island auto shops and their owner pleaded guilty today to tax evasion for under-reporting more than $8 million in sales over a decade.

According to New York Attorney General Letitia James, Broadway Towing, Inc. and Broadway Auto & Towing, Inc., both located at 25 Broadway in Freeport, pleaded guilty to criminal tax fraud. In addition, the owner of both shops, Luis Crespo, 53, of Freeport, also pleaded guilty to petty larceny.

As part of the plea, Crespo and the stores agreed to pay the state more than $900,000 in restitution, interest and penalties.

“There’s no award presented to those who partake in tax evasion, but Broadway Towing’s performance has ensured the company finally pays New York state more than $900,000 in restitution, interest, and penalties,” said James. “Today’s convictions should serve as a clear reminder that we will never tolerate those who seek to defraud our state out of its owed tax revenue, especially as we continue to face budget shortfalls. The lights have finally dimmed on Broadway Towing’s fraud. ”

According to James, a joint investigation by her office's Auto Insurance Fraud Unit and the state Department of Taxation and Finance's Criminal Investigations Division found that from 2009 to 2018, Crespo under-reported more than $8 million in taxable sales from his businesses, and failed to pay more than $700,000 in sales tax collected at his shops.

The two shops each pleaded guilty to one count of third-degree criminal tax fraud. Crespo pleaded builty to petty larceny, and was sentenced to a three-year conditional discharge. He has already repaid $160,000 to the state, and will have to pay another $750,000.

“Business owners who tilt the playing field for their own personal gain not only violate the trust of their community, they rob it of critical funding for public programs and services,” said Commissioner of Taxation and Finance Michael Schmidt. “This is hundreds of thousands of dollars that would have helped improve lives in local neighborhoods, but instead they were siphoned off for personal profit. We’ll continue to work with the attorney general and all levels of law enforcement to ensure those committing tax fraud are held accountable."