Gerard Rauzi was an auditor in the New York State Department of Taxation and Finance, and he worked with Salvatore Papasso, a department investigator.
Together, they toiled to put a case together against a couple of city businessmen who they caught evading $1.1 million in taxes.
The businessmen owned a chain of grocery stores, delis, bagel shops and convenience stores. They filed bogus tax statements, and pocketed the difference over a span of about four-and-a-half years.
Rauzi and Papasso put together a strong case. But, as they worked together to finish it up in their offices at 2 World Trade Center, they died when terrorists launched the Sept. 11, 2001 attacks.
Today, Manhattan District Attorney Robert Morganthau said other investigators and prosecutors picked up the ball, and finished the case that Rauzi and Papasso started:
Manhattan District Attorney Robert M. Morgenthau announced the guilty plea of a businessman who evaded approximately $1.1 million in New York State and City sales taxes over a 4½ year period in connection with 22 family-owned bagel shops, delicatessens, superettes, 24-hour convenience stores, newsstands and one gas station. All of the shops are located in Staten Island, except one that is in Queens.
MOHAMMED HUSSAIN, who owns the stores with his wife, pleaded guilty to one count of Grand Larceny in the Second Degree relating to the theft of sales tax collected on behalf of all of the stores. As part of his sentence, he will pay $1.6 million in back sales tax, interest and penalties and an additional $50,000 of general corporation tax liability to New York City. Sentencing has been scheduled for September 23, 2004.
In a related matter, HUSSAIN's brother-in-law, SAQUIB SHAMSAHD KHAN, pleaded guilty to Tax Law § 1817(b) - Sales and compensating use taxes. The defendant admitted that he caused the filing of a false sales tax return on behalf of one the Staten Island stores for the sales tax quarter ending August 31, 2002. His sentencing has also been scheduled for September 23, 2004.
Hussain could get 15 years in state prison; his brother-in-law could get a year in Riker's.
