New York Resident and New Jersey Corporation Sentenced in $14 Million Conspiracy to Commit Tobacco Excise Tax Fraud
SACRAMENTO, Calif. — The corporate officer of the House of Oxford Inc., a New Jersey corporation, Alex Goldman, 43, of Great Neck, New York, was sentenced today to three years in prison, for conspiracy to commit tobacco excise tax fraud, U.S. Attorney McGregor W. Scott announced.
In addition, House of Oxford was sentenced to two years of probation where it will be subject to search and required to have financial records monitored. Additionally, House of Oxford and Alex Goldman agreed to the civil forfeiture of approximately $14 million in assets that represented the proceeds of the fraud scheme including cash, various investments, vehicles, artwork and jewelry.
According to court documents, House of Oxford conspired with multiple individuals and other business entities operating in California to provide tens of millions of dollars in untaxed other tobacco products (OTP) to businesses with the knowledge that the OTP would be sold illegally in the state of California. In total, House of Oxford and Goldman, defrauded the State of California out of approximately $14 million in tobacco excise tax revenue.
A large percentage of the proceeds of the excise tax are used to fund California’s early childhood development program, First 5 California. As a result of this case, approximately $14 million in forfeited assets were returned to the State of California through the U.S. Department of Justice’s remission program.
“This case is the result of a highly successful collaborative effort involving federal and state investigators and prosecutors, working side-by-side,” said U.S. Attorney Scott. “The judgment handed down today should serve as a warning to those who consider stealing from the public. We will work hard to recover those funds and ensure that those responsible are held accountable.”
“This partnership has helped California recover approximately $14 million,” said California Department of Tax and Fee Administration (CDTFA) Director Nick Maduros. “The CDTFA, in collaboration with law enforcement, is committed to recovering revenue lost to tax evasion and fraud in order to help fund the vital public services on which Californians rely.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the former California State Board of Equalization, now the California Department of Tax and Fee Administration. Assistant U.S. Attorneys Michael D. Anderson and Rosanne L. Rust prosecuted the case.