New City Pub Owner Accused Of Stealing $488K In Sales Taxes

NEW CITY, NY — The owner of D&D's Restaurant and Pub on South Main Street is accused of holding back close to half a million dollars in sales tax from the state.

On Monday, the New York State Department of Taxation and Finance and the Rockland County District Attorney’s Office announced the arrest and arraignment of Thomas Schunke, 38, of West Nyack.

He is charged with five felony counts of criminal tax fraud and one felony count of grand larceny.

Prosecutors alleged that between 2012 and 2018, he collected $488,000 in sales tax from customers at the pub, located at 191 S. Main St., but didn't give that money to New York State, as required by law. In addition, he’s charged with failing to file sales tax returns from 2014 to 2018.

"As a matter of law, business owners must turn over sales taxes collected from customers,” said Acting Rockland County District Attorney Kevin Gilleece in the announcement. “By purposefully evading his tax obligations, this defendant defrauded the state and all law-abiding taxpayers. My office will continue working with the New York State Department of Taxation and Finance to identify unscrupulous business owners and hold them accountable."

Schunke turned himself in to investigators. He was arraigned in Rockland County Court on June 27 following a grand jury indictment.

“Business owners who disregard their obligation to pay the sales tax they collect violate the trust of their customers, deprive the communities where they operate of revenue needed for vital services, and put similar businesses at a competitive disadvantage,” said New York State Commissioner of Taxation and Finance Michael R. Schmidt. “We will continue to work closely with our partners in law enforcement to bring tax criminals to justice, and we thank the Rockland County District Attorney for prosecuting this case.”

A criminal complaint is only an accusation; the defendant is presumed innocent until proven guilty.