$734,000 In Sales Taxes Not Paid In Erie County

Weekends in jail? Weekends for 2 months. that’s 16 to 20 days in jail. Is there any wonder why we have these problems.

$734,000 In Sales Taxes Not Paid In Erie County’s Largest Tax Case

The Erie County District Attorney’s Office is calling it the largest sales tax case in county history.

Michael Wolfberg, owner of Premium Auto Sales on Sheridan Drive in Williamsville, failed to pay any sales taxes between March 2001 and November 2005, according to investigators. During that time, Wolfberg didn’t pay nearly $734,000 to the state and Erie County, which would have received $365,000 of the total amount.

The dollar amount isn’t the only element of this story that is raising eyebrows.

Wolfberg, who pleaded guilty to grand larceny, a felony, in April, faced up to 15 years behind bars. Instead, he will spend two months worth of weekends in jail.

Erie County District Attorney Frank Clark asked, “How much of a determent do you think that is?”

Wolfberg’s attorney, Edward C. Cosgrove, paints a different picture.

“My client is a decent chap. He made some very poor business judgments,” Cosgrove said.

In addition to spending two months of weekends in jail, from 7pm Fridays to 7pm Sundays, Wolfberg will be on probation for five years, and he must pay full restitution, or the full amount he failed to pay in sales taxes. In addition, Wolfberg has taken out a $700,000 life insurance policy and made the New York State Department of Taxation and Finance the beneficiary.

Cosgrove said Wolfberg has already repaid $106,000 of the amount owed, and expects to chip in up to another $200,000 when the Sheridan Drive property is sold.
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