A 56-year-old man from Whitestone, New York, was arrested in Connecticut on Friday for stealing nearly $50,000 in state sales tax, according to the state Department of Revenue Services.
The DRS Criminal Investigative Division conducted a thorough investigation into Chen, the owner of Exquisite Nail Spa, Inc. in Danbury.
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Investigators revealed that between March 2022 and June 2024, Chen allegedly underreported his company’s taxable revenues by roughly $740,000. Prosecutors think he neglected to remit $46,945 in sales tax collected from his clients.
Chen is charged with first-degree larceny and 28 counts of willfully delivering a fraudulent return. DRS reports he was released from detention on a $10,000 non-surety bail and will appear in Hartford Superior Court.
“We take violations of the public’s trust in our tax system seriously and will fully investigate these matters on behalf of Connecticut taxpayers,” DRS Commissioner Mark Boughton said. “I want to thank our CID agents for their excellent and professional work on this investigation.”
Those with knowledge about a tax-related offense can contact DRS by filling out a referral form available on the agency’s website.
