Velez
GOSHEN – A Pine Bush man was sentenced by Orange County Court Judge
Craig Steven Brown on Monday to 1 ½ to 4 ½ years in state
prison for committing the crime of criminal tax fraud.
Francisco Velez, 43, pled guilty in December 2016 to committing criminal
tax fraud acts with intent to evade taxes and failed to pay proper income
taxes.
He was ordered to pay restitution to the state in the amount of $58,948,
$25,000 of that on the day he was sentenced.
Velez was the owner and operator of OC Tobacco, Inc., which did business
as the Havana House Cigar Lounge on Main Street in the City of Middletown.
An inspection of his business by the state tax department revealed over
3,500 untaxed cigars and further investigation determined he had underreported
not only his tobacco taxes, but his sales and personal income taxes as
well.
Following his guilty plea to the felony tax charge, Velez failed to return
to court and was charged with bail jumping. He was sentenced to one year
in jail on that charge last November.
The case was prosecuted by Chief Assistant District Attorney Christopher
Borek.
