Larchmont's Twinkle Toes Owners Arraigned on Grand Larceny, Tax Evasion Charges

Larchmont residents Denise and Christopher MacDonald and three companies they own in Larchmont and Rye have been charged with grand larceny and a repeated failure to file tax returns, the District Attorney's office announced today.

From 1998 through 2009, the couple collected New York State sales tax without remitting the money to the state, the DA said. They also failed to pay personal income tax to the state since at least 2004. These two larcenies combined add up to more than of $500,000.

The arraignment comes after a one-year investigation by the Westchester County District Attorney's office and the New York State Department of Taxation and Finance. Bail for the MacDonalds was set at $10,000 and $5,000 cash, respectively, and has been paid. The couple was reportedly in the Larchmont and Rye stores Thursday, but they have not returned calls for comment.

The defendants' next court appearance will be on Sept. 28. They face "a maximum of five to fifteen years in state prison on the top charge," according to a press release.

A Larchmont business owner, who asked to remain anonymous, was surprised and concerned to hear about the indictment and said it was "scandalous news" for the village.

"That store [Twinkle Toes] has a lot of business," she said, wondering what would happen to the couple and the village if the shop shut down. "It always seemed to be a nice draw for the block because it was busy."

She described Mrs. MacDonald as "lovely" and her husband as a "community-minded man," adding that the couple has a son in college. "They always seemed like normal people who were paying their bills," she said.

Lee Rubin, owner of Wendy Gee on Palmer Avenue, said he was "extremely disappointed and sad" upon hearing the news. 

Twinkle Toes' next door neighbor, Lonford's owner Steve Bitondo, said he was "very surprised" by the news, and hoped this did not lead to a foreclosure of the store.

"Larchmont doesn't need another vacancy," he said.

All of the defendants' businesses have been open since a search warrant was executed one year ago, said Susan Burns, a spokeswoman from the New York State Department of Taxation and Finance. The department will "seek all delinquent tax liabilities, including interests and penalties," and hopefully come to some agreement, she added. "Generally, that's what happens."

Bitondo described Ms. MacDonald as "so meticulous" and seemingly "so involved with each aspect of her business."

"It was very important for her to keep the image and take care of the town and does nothing but good things. There is nothing not to like about her," he said. "This is purely a financial thing."

Denise MacDonald, 47, of 21 Jochum Ave., was charged with two counts of second-degree grand larceny, one count of third-degree grand larceny, two counts of "Repeated Failure to File Personal Tax Returns," and one count of "Repeated Failure to File Corporate Tax Returns," all felonies.

Her husband, Christopher MacDonald, 53, of the same address, was charged with second-degree grand larceny and two counts of Repeated Failure to File Personal Tax Returns, all felonies.

In addition, the Larchmont landscaping company T C.W.M. Horticultural Services, Inc., of 1943 Palmer Ave., was charged with one count of second-degree grand larceny.

The baby clothing store Twinkle Toes Baby, Inc., which has two locations (one in Rye and one at the same address listed above), was charged with one count of second-degree grand larceny and one count of Repeated Failure to File Personal Tax Returns.

The home furnishings store Wish Home Styles, Inc., of the same Larchmont address as above and with a Rye sales location, was charged with one count of third-degree grand larceny.

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