Helmer Toro, the owner of H&H Bagels in New York City, pleads guilty to grand larceny, offering a false instrument for filing, and for violating Labor Law for unemployment insurance tax manipulation. Toro admitted to failing to pay for more than $369,000 in taxes that were withheld from his employees’ payroll.
Investigation revealed that Toro filed New York City and New York State withholding tax returns under 6 shell companies to obtain a lower unemployment insurance tax rate. Toro admitted to lower his unemployment insurance tax rate by transferring his employees from one shell company to the next.
If convicted, Toro faces a penalty of 50 weekends in prison and a fine of $500,000.
