Eight Charged With Inter-State Gas Fraud
BROOKLYN, N.Y. -- A Brooklyn grand jury has charged four individuals and six corporations involved in a scheme to import untaxed gasoline with enterprise corruption. Another four individuals were charged with tax felonies.
The charges stem from a scheme involving fraud and tax evasion, according to a report in the North Country Gazette. The enterprise corruption indictment concerns a criminal organization that evaded New York state tax on fuels when the individuals claimed to be an unlicensed motor fuel transporter that would purchase gas in New Jersey for a lower taxed amount, claiming it would be sold in the state, the report said.
The individuals claimed they would transport the fuel to New York where gas stations on Long Island and New York City would buy the fuel. False documents were prepared to show that the New York State taxes were paid, therefore deceiving the unknowing station owners, the North Country Gazette stated.
In a companion civil forfeiture case, an Order of Attachment for $3 million has been filed against the indicted enterprise corruption individuals.
The newspaper reported that the criminal organization is also believed to have sold New York gas stations unleaded fuels at the price for premium fuel. Unbeknownst to them, station owners would then sell regular fuel at premium prices to its customers. An additional charge surrounds short-changing the stations by claiming the organization had delivered a larger fuel amount than was actually delivered. According to the report, the organization charged the stations for the larger volume at the increased price.
All the charges stem from a two-year long investigation by the New York Attorney General's Organized Crime Task Force and the State Tax Department.
The corporations that were indicted for using the individuals to carry out the ploy are: A&E Petroleum Corp., DI Petroleum Corp., Express X Petroleum Corp., Zan USA Inc., Express Petroleum Transportation Corp. and Max Truck Repair Inc.
The charges stem from a scheme involving fraud and tax evasion, according to a report in the North Country Gazette. The enterprise corruption indictment concerns a criminal organization that evaded New York state tax on fuels when the individuals claimed to be an unlicensed motor fuel transporter that would purchase gas in New Jersey for a lower taxed amount, claiming it would be sold in the state, the report said.
The individuals claimed they would transport the fuel to New York where gas stations on Long Island and New York City would buy the fuel. False documents were prepared to show that the New York State taxes were paid, therefore deceiving the unknowing station owners, the North Country Gazette stated.
In a companion civil forfeiture case, an Order of Attachment for $3 million has been filed against the indicted enterprise corruption individuals.
The newspaper reported that the criminal organization is also believed to have sold New York gas stations unleaded fuels at the price for premium fuel. Unbeknownst to them, station owners would then sell regular fuel at premium prices to its customers. An additional charge surrounds short-changing the stations by claiming the organization had delivered a larger fuel amount than was actually delivered. According to the report, the organization charged the stations for the larger volume at the increased price.
All the charges stem from a two-year long investigation by the New York Attorney General's Organized Crime Task Force and the State Tax Department.
The corporations that were indicted for using the individuals to carry out the ploy are: A&E Petroleum Corp., DI Petroleum Corp., Express X Petroleum Corp., Zan USA Inc., Express Petroleum Transportation Corp. and Max Truck Repair Inc.