Brooklyn business owner pleads guilty to tax evasion | Takeover bid

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A New York man pleaded guilty yesterday to tax evasion.

According to court documents and statements made in court, from 2009 to 2014, David Seruya was the original owner and shareholder of a New Jersey-based home warranty company. In 2014, Seruya entered into a buyout agreement whereby he agreed to sell his shares back to the company and leave the company. In exchange for his shares, the home warranty company agreed to pay Seruya a total of more than $4.1 million, which included a lump sum payment and installments over 24 months. Seruya under-reported to his tax preparer the actual amount of income he received from the sale of his shares. Further, Seruya failed to inform his tax preparer of the income from the canceled mortgage debt. As a result, Seruya forced his tax preparer to prepare and file false tax returns for the 2014 to 2016 tax years. As part of his plea, Seruya also admitted to evading tax for the years 2010-2013. In total, Seruya’s tax evasion caused a loss to the IRS of over $1.1 million.

Seruya is due to be sentenced on December 14 and faces a maximum sentence of five years in prison on each of the three counts of tax evasion. He also faces a period of supervised release, restitution and financial penalties. A federal district court judge will determine any sentence after considering US sentencing guidelines and other statutory factors.

Acting Assistant Deputy Attorney General Stuart M. Goldberg of the Justice Department’s Taxation Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorney Shawn Noud for the Tax Division and Assistant U.S. Attorney Carolyn Silane for the District of New Jersey are prosecuting the case.


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