Three concrete corporations run by Hasidic Jews in upstate New York pled guilty to withholding $780,000 in taxes, the Times Herald-Record reported.
Two principals of the mixing companies, David Gross and David Friedman, were also sentenced to misdemeanor tax fraud. The sentences were given in late December.
Two of the companies — Concrete On Demand and Copour — have offices in Kiryas Joel, a Hasidic enclave in Rockland County. The village is almost exclusively inhabited by members of the Satmar Hasidic group. An office for the third company, Comix, Inc., is in a nearby town in Orange County.
Each company admitted to collecting sales tax but not paying it to the state — withholding as much as $50,000 in one year.
Both Gross and Friedman gave the court checks for the full amounts owed to the state by their companies shortly after sentencing. Court-imposed penalties for the tax fraud could be as high as double the amount the nearly $800,000 the companies owed.
This story "Hasidic Concrete Companies Plead Guilty To Tax Fraud" was written by Ari Feldman.