A Roslyn man and his brother pleaded guilty at the federal courthouse in Central Islip Thursday to filing a false corporate tax return for the 2009 fiscal year, underreporting income and inflating expenses to avoid paying the correct amount, U.S. Department of Justice officials said.
Bruce Bendell, 64, of Roslyn, and Harold Bendell, 69, of Englewood Cliffs, N.J., were owners of Major World, formally known as Major Automotive Companies Inc., of Long Island City.
“By their pleas, Harold and Bruce Bendell admitted that they concealed millions of dollars of their company’s income and avoided paying their fair share of taxes to the United States government,” U.S. Attorney Richard Donoghue said in a statement. “This Office and our law enforcement partners will continue to work together to ensure that individuals who attempt to evade their responsibilities as taxpayers are held responsible.”
The U.S. Attorney’s Office said that on Aug. 10, 2010, Bruce and Harold Bendell filed a corporate tax return form that failed to report approximately $1,417,814 in gross receipts and approximately $2,116,000 in cash payroll expenses for which Major Automotive did not pay payroll taxes.
Prior to their guilty pleas, the Bendells paid over $3,888,267 in restitution to the Internal Revenue Service and resigned from Major World.
“This great country of ours relies on a tax system based on voluntary compliance,” IRS-CI Special Agent-in-Charge Robnett said in a statement. “Harold and Bruce Bendell took unlawful advantage of the system that financially impacts all Americans. Our special agents along with the U.S. Attorney’s Office are committed to protecting the system that contributes to our way of life.”
Bruce Bendell was a prominent member of the Queens business community, having served in leadership positions on a number of not-for-profit boards.
The scandal is one of three involving the dealership, founded in 1995 by the Bendell brothers and their father, in the past 10 years.
In 2013, Chris Orsaris, who served as the dealership’s general manager until his 2010 arrest, was sentenced to 7 years for embezzling about $7 million from the company to afford his lavish lifestyle, including multi-million dollar homes in Miami, Florida, Whitestone, Queens, and Southampton, according to the Times-Ledger Newspapers in Queens.
Orsaris was also required to pay about $13 million in restitution to Major Automotive Companies in the sentencing as well as relinquish his homes.
In March 2017, the Department of Consumer Affairs filed charges against Major World for deceptive sales practices, stating the company had a long-standing practice of misleading customers with deceptive lending practices and falsified vehicle histories, according to a press release from New York City.
The damages filed by the department, which were originally set at $1.5 million, were increased to $36.5 million last December.
Reach reporter Amelia Camurati by email at acamurati@theislandnow.com, by phone at 516-307-1045, ext. 215, or follow her on Twitter @acamurati.
