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New York Announces $13 Million False Claims Settlement

Posted  October 20, 2017

By the C|C Whistleblower Lawyer Team

New York Attorney General Eric Schneiderman’s office announced “Express Hospitality Group” has agreed to pay $13 million to settle claims initially brought by a whistleblower under New York State’s False Claims Act. Schneiderman also announced the conviction of Yankee Clipper Food Services on felony charges for avoiding New York taxes between 2011 and 2015.

“For years, Express Hospitality Group disregarded  state law and New York taxpayers,” said Attorney General Schneiderman. “Today’s felony conviction and settlement should send a clear message to those attempting to avoid paying their fair share: tax evasion is illegal, disgraceful — and it will not be tolerated.”

According to Schneiderman’s press release, an investigation revealed that Express Hospitality Group intentionally underpaid over $5 million in taxes owed to New York and underpaid approximately $350,000 owed in fees to the Port Authority. The investigation also uncovered that the company’s tax schemes involved maintaining a double set of books, collecting – but failing to remit – State and City sales tax, failing to withhold taxes on employee compensation, and underreporting receipts for corporate franchise tax purposes.

Tagged in: FCA State, Tax Fraud,