Two Former Senior Executives of “Major World” Automotive Dealerships Plead Guilty to Filing False Corporate Tax Return

Earlier today, at the federal courthouse in Central Islip, Harold Bendell and Bruce Bendell, the former senior managers of Major Automotive Companies, Inc., doing business as “Major World,” pleaded guilty to filing a false corporate tax return for the calendar year 2009 that underreported income and inflated expenses in order to avoid paying the proper taxes owed.  Major World operated automobile dealerships in Queens, New York, and throughout the New York Metropolitan area.  Prior to their guilty pleas, the defendants paid over $3,888,267 in restitution to the Internal Revenue Service and resigned from Major World.  The guilty pleas were entered before United States District Judge Joanna Seybert.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the guilty pleas.

“By their pleas, Harold and Bruce Bendell admitted that they concealed millions of dollars of their company’s income and avoided paying their fair share of taxes to the United States government,” stated United States Attorney Donoghue.  “This Office and our law enforcement partners will continue to work together to ensure that individuals who attempt to evade their responsibilities as taxpayers are held responsible.”

“This great country of ours relies on a tax system based on voluntary compliance,” stated IRS-CI Special Agent-in-Charge Robnett.  “Harold and Bruce Bendell took unlawful advantage of the system that financially impacts all Americans.  Our special agents along with the U.S. Attorney’s Office are committed to protecting the system that contributes to our way of life.”

As stated in the charging and plea documents, on or about August 10, 2010, both defendants filed a corporation tax return Form 1120 for the calendar year 2009 that failed to report approximately $1,417,814 in gross receipts that Major Automotive had received and approximately $2,116,000 in cash payroll expense for which Major Automotive did not pay payroll taxes.

When sentenced, each defendant faces a maximum of three years in prison.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorney Burton T. Ryan, Jr. is in charge of the prosecution.

The Defendants:

HAROLD BENDELL
Age:  69
Englewood Cliffs, New Jersey

BRUCE BENDELL
Age: 64
Roslyn, New York

E.D.N.Y. Docket 17-CR-585 (JS)