A New York man pleaded guilty yesterday to tax evasion.
According to court documents and statements made in court, from 2009 to 2014, David Seruya was an owner and original shareholder of a New Jersey-based home warranty business. In 2014, Seruya entered into a buyout agreement where he agreed to sell his equity shares back into the business and exit the company. In exchange for his shares, the home warranty company agreed to pay Seruya a total of more than $4.1 million, which included a lump sum payment and installment payments spread over 24 months. Seruya reported to his return clerk the actual amount of proceeds he received from the sale of his shares. Additionally, Seruya did not inform his return preparer of the proceeds received from the canceled mortgage debt. As a result, Seruya had his return preparer prepare and file false income tax returns for the tax years 2014 to 2016. As part of his plea, Seruya also admitted to tax evasion for the years 2010 to 2013 . In total, Seruya’s tax evasion caused a loss to the IRS of more than $1.1 million.
Seruya is scheduled to be sentenced on December 14 and faces a maximum sentence of five years in prison on each of the three counts of tax evasion. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine each sentence after considering the U.S. Sentencing Guidelines and other legal factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and US Attorney Philip R. Sellinger for the District of New Jersey made the announcement.
The IRS-Criminal Investigation is investigating the case.
U.S. Attorney Shawn Noud of the Tax Division and Assistant U.S. Attorney Carolyn Silane for the District of New Jersey are prosecuting the case.