Astoria Dental Lab Owner Investigated and Sentenced for Payroll Tax Fraud

Simon Galeas, 48, the owner of an Astoria dental lab, was sentenced on September 20, 2013 to 5 years of probation, including 6 months of home confinement, for willfully failing to collect and pay over employment taxes to the Internal Revenue Service.  U.S. District Judge Arthur D. Spatt also ordered Galeas to make restitution of $237,468 and to pay a $10,000 fine.

 According to court documents and statements made in court, Galeas owned and operated Steinway Dental Laboratory, Inc., which operated as Steinway Fisher Dental Labs. The company provided artificial teeth to hospitals, dentists and institutions in the New York-Metropolitan area. As the owner and operator of Steinway Fisher Dental Labs, Galeas was required to collect,  account for and pay over Federal Insurance Contributions Act (“FICA”) taxes to the Internal Revenue Service.  These taxes are used to fund various federal benefit programs, including Social Security and Medicare.

 Galeas, however, made an arrangement with a Brooklyn commercial check cashing company to divert checks payable to Steinway Laboratories and cash them. The cash Galeas received was not reflected on the business’s books and records and he used it to pay his employees “off the books,” without paying FICA taxes to the government. Overall, Galeas cashed more than $2 million in checks.

 The investigation was worked by Internal Revenue Service–Criminal Investigation and was prosecuted by the United States Attorney’s Office for the Eastern District of New York.

 IRS-Criminal Investigation is the law enforcement arm of the Internal Revenue Service.  According to the IRS’s website, www.irs.gov, IRS-Criminal Investigation “serves the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.”

 Other recent cases that the IRS has investigated include the following:

 ·         On August 22, 2013, Jessica Armas was sentenced to one day in prison and five years of supervised release for conspiracy to commit bank fraud, access device fraud and conspiracy to obstruct the Internal Revenue Service.  She was ordered to make restitution of $230,000.

 ·         On September 13, 2013, Joseph D’Agostino was sentenced to time served and two years of supervised release for conspiracy to commit money laundering.  He was ordered to make restitution of $5,000.

 ·         On July 17, 2013, Joel Gomez was sentenced to 16 months in prison for conspiracy to commit theft of government funds and theft of government funds.

 ·         One June 27, 2013, Abdul Munem Nuhu was sentenced to time served for conspiracy to defraud the United States with respect to claims.  He was then subject to deportation.

 ·         On September 12, 2013, Diana Ramirez was sentenced to 24 months in prison for conspiracy to commit theft of government funds and theft of government funds.  She was ordered to make restitution of $315,028 to the Internal Revenue Service.

 ·         On July 1, 2013, Faustino Ramirez was sentenced to 3 months in prison for conspiracy to steal government funds.

 ·         On September 25, 2013, Humberto Romero was sentenced to 6 months in prison for aiding and assisting in the preparation of false tax returns.

 ·         On July 25, 2013, Jose Rosario was sentenced to 24 months in prison for wire fraud.  He was ordered to make restitution of $1,449,814.95.

 ·         On August 29, 2013, Dmitriy Shokler was sentenced to 2 years of probation for aiding and abetting in the filing of false tax returns.  He was ordered to make restitution of $592,704.50 to the Internal Revenue Service.

 ·         On May 30, 2013, Steven Show was sentenced to time served and 3 years of supervised release for bank fraud conspiracy and conspiracy to impair, impede obstruct and defeat the Internal Revenue Service.  He was ordered to make restitution of $1,361,650.

 ·         On June 25, 2013, Peter Stewart was sentenced to 2 years of probation for conspiracy to commit embezzlement and theft of public funds and for embezzlement and theft of public funds.  He was indicted in July 2012 with co-conspirator Carlton Robinson.