Abdul J. Mazumder, the owner of multiple Subway franchises throughout New York City, pleaded guilty to felony charges of Grand Larceny, Offering a False Instrument for Filing in the 1st Degree and Welfare Fraud, for stealing sales tax, evading personal income tax and committing Medicaid recipient fraud.
Between 2004 and 2010, Mazumder withheld more than $1.3 million in sales tax and $59,000 in personal income tax to New York State (all of which included penalties and interest). Mazumder also defrauded Medicaid benefits of more than $60,000 since 2004.
Mazumder admitted that his failure to turn over more than $500,000 in sales tax from his Subway franchises and that his failure to report his total income was intentional. Mazumder also admitted to purposely understate his and his family’s income and assets to receive Medicaid benefits.
Mazumder’s sentence will additionally include weekend imprisonment for 50 weeks and a fine of $15,000.
