Just six months after the Upper West Side location of famed bagel shop H&H Bagels was seized by the taxman, the City Room reports that the store's owner has been indicted for tax fraud and accused of grand larceny, falsifying records, and violating labor laws. He owes over three hundred thousand dollars in payroll taxes and unemployment insurance tax, and he got away with it by setting up new shell companies every year for six years. As the Times explains, "The longer a company has been around and the more employees it has let go, the higher the company’s unemployment insurance rate will be."
If convicted, the bagel man could face up to 15 years in prison and may have to pay over $1 million to the authorities. The fate of H&H is unknown.
· Bagel Shop Owner is Indicted [City Room]
· H&H Seized by Tax Man [~ENY~]