The IRS found some holes in tax returns filed by one of the city's biggest bagel makers, and now he'll spend his weekends all loxed up in jail. Helmer Toro, founder of H & H Bagels, pleaded guilty to second degree grand larceny for pocketing $330,000 in payroll taxes from his employees that he did not turn over to the state as required. Assuming the sentencing judge goes along with the plea deal, Toro will serve 50 weekends in jail and pay more than half a million dollars in restitution.
According to the Manhattan DA, Toro also admitted that he registered 89 payroll names under six different shell companies so that he could pay their unemployment insurance taxes under the lowest rate, which is reserved for new businesses. Toro would have faced up to 15 years in prison had he gone to trial and been convicted. "Under no circumstances can employers gain in business by cheating their employees," District Attorney Cy Vance said in a statement. "The City's businesses must adhere to ethical standards and contribute to the tax revenue of the City and State, as well as protect their employees' interests." But what about protecting New Yorkers from mediocre bagels?!
