Failed to Report $16 Million in Taxable Sales, Has Three Years to Pay Back $3 Million or Face Prison
A former Long Island resident has pleaded guilty to grand larceny charges after failing to report $16 million in taxable sales on a group of auto shops that he owned.
From June 1, 2011 to November 30, 2021, Timothy Kjaer failed to submit dozens of sales tax returns and falsified others that substantially underreported the taxable sales of several businesses he owned in Suffolk County. Kjaer owned the following businesses that failed to report sales tax revenue to New York State:
• Automotive Marine & Styling Center, Inc., and Real Deal Auto Inc. – 1165 E. Main Street in Riverhead
• Not Just Tint, Inc., S&T Autoworks 1, Inc., and S&T Auto Centers, Inc. – 3165 Route 112 in Medford
• EZ Credit Auto Sales, Inc. – 2910 Route 112 in Medford
• Universal Auto, Inc. – 1831B Route 112 in Medford
• Universal Auto Sales & Service, Inc. – 8B Middle Country Road in Coram
In total, Kjaer failed to report taxable sales of approximately $16,142,986 in order to steal $1,385,605 in sales tax collected on behalf of New York State. Kjaer admitted that the sales tax money was collected from customers on behalf of the state and that he intentionally failed to remit those funds as required.
On September 12, 2024, Kjaer, 49, of Myrtle Beach, South Carolina, pleaded guilty to first-degree grand larceny, a Class B felony, before Acting Supreme Court Justice Stephen Braslow. As part of his plea, Kjaer will be required to pay $3 million to New York State or face imprisonment. Kjaer is due back in court on September 12, 2025.
“For over a decade, this defendant brazenly stole money from New York State by pocketing the sales tax he collected from customers instead of remitting it to the New York State Department of
Taxation and Finance. In total, this defendant stole over $1.3 million by failing to report more than $16 million in taxable sales,” said Suffolk County District Attorney Ray Tierney. “Today’s plea serves as a clear reminder that failing to pay taxes is a serious crime against the public that will not be tolerated. I thank our partners at the New York State Department of Taxation and Finance for continuing to work with my Office to investigate and prosecute tax fraud and to protect taxpayers.”