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H & H Bagel Owner Pleads Guilty to Tax Fraud
By
John Del Signore
Published May 28, 2010
Modified May 28, 2010
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By
John Del Signore
Published May 28, 2010
Modified May 28, 2010
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The IRS found some holes in tax returns filed by one of the city's biggest bagel makers, and now he'll spend his weekends all loxed up in jail. Helmer Toro, founder of H & H Bagels, pleaded guilty to second degree grand larceny for pocketing $330,000 in payroll taxes from his employees that he did not turn over to the state as required. Assuming the sentencing judge goes along with the plea deal, Toro will serve 50 weekends in jail and pay more than half a million dollars in restitution.
According to the Manhattan DA, Toro also admitted that he registered 89 payroll names under six different shell companies so that he could pay their unemployment insurance taxes under the lowest rate, which is reserved for new businesses. Toro would have faced up to 15 years in prison had he gone to trial and been convicted. "Under no circumstances can employers gain in business by cheating their employees," District Attorney Cy Vance said in a statement. "The City's businesses must adhere to ethical standards and contribute to the tax revenue of the City and State, as well as protect their employees' interests." But what about protecting New Yorkers from mediocre bagels?!
Tagged
bagel
fraud
h & h
helmer toro
taxes
John Del Signore
Originally from the Albany area, John Del Signore has called NYC home since 1995. In addition to his thousands of meticulously-crafted bespoke blog posts for Gothamist, his writing has also been published in The Awl, Deadspin, The Nervous Breakdown, and performed at The Brick Theater in Brooklyn.
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Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
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