Attorney General James and Acting Tax Commissioner Hiller Announce Conviction of Capital Region Car Dealership Owner for Failing to Pay Over $160,000 in Taxes

January 24, 2025

NEW YORK - New York Attorney General Letitia James and Acting Commissioner of the New York State Department of Taxation and Finance (DTF) Amanda Hiller today announced the sentencing of Guy Kennedy Nicolas of Colonie, New York and his business, G&A Auto Care, Inc., for stealing over $160,000 in sales tax by underreporting more than $2 million in taxable sales. An investigation led by the Office of the Attorney General (OAG) found that Nicolas failed to file annual sales tax returns for his car dealership business for all but two years from 2013 to 2023. Nicolas and his company pleaded guilty to felony charges in November 2024 and yesterday judgments were entered against them requiring them to pay back the full amount of the stolen sales tax. Nicolas was also sentenced yesterday to five years of probation.

"When New York businesses fail to pay taxes, they cheat New Yorkers out of critical resources that support education, health care, transportation, and other essential services," said Attorney General James. "Guy Nicolas and his business violated the law and failed to pay over $160,000 in sales tax, and he was ordered to pay back what he owes. My office will continue to hold anyone accountable who attempts to defraud the tax system and cheat hardworking New Yorkers."

"We appreciate the efforts of the Attorney General's office in prosecuting those who seek to evade tax laws," said Acting Tax Commissioner Amanda Hiller. "This case and others like it will help level the playing field for honest business owners across the state."

"The sentencing of Mr. Nicolas sends a strong message that dishonest business practices will not be tolerated in New York State," said New York State Police Superintendent Steven G. James. "This sentencing demonstrates that collaborative work among law enforcement partners is vital in reaching the same goal: holding those who break our laws accountable. I thank the Attorney General's Office and the Department of Taxation and Finance for their shared commitment to investigating those who deceive others for their own gain."

"Having a license to operate a car dealership in New York carries a responsibility to follow the law in the process of running that business, including paying your taxes," said DMV Commissioner Mark J.F. Schroeder. "I am pleased that our team was able to assist in this case and I applaud the efforts of the Office of the Attorney General and partner agencies to hold this business accountable on behalf of all New Yorkers."

As the owner of G&A Auto Care, Inc., Nicolas was the sole person responsible for sales tax at his business. Nicolas was required to report all taxable sales, including sales of cars, from his dealership and file sales tax returns on at least a yearly basis. A joint investigation by OAG, DTF, and the New York State Police (NYSP), with assistance from the New York State Department of Motor Vehicles (DMV) found that from at least 2013 through 2023, G&A Auto Care, Inc. and Nicolas failed to file all but two annual sales tax returns. According to an audit conducted by OAG, between June 2013 and March 2023, Nicolas failed to report more than $2 million in total sales and stole over $160,000 in sales tax due.

In November 2024, Nicolas and his business pleaded guilty to Grand Larceny in the Second Degree, a class C felony. Yesterday, G&A Auto Care, Inc. and Nicolas were sentenced in Albany County Court before Judge William T. Little. Nicolas was sentenced to five years of probation, and G&A Auto Care, Inc. was sentenced to a three-year conditional discharge. As part of their sentences, both defendants admitted to the full amount of sales tax owed and had judgments entered against them requiring them to pay back the $160,000 owed to the state.

Attorney General James thanks DTF, NYSP Financial Crimes Unit and Special Investigations Unit, and DMV for their invaluable assistance on this case.

This case is the latest example of Attorney General James taking action to ensure all New Yorkers pay their fair share in taxes. In November 2024, Attorney General James secured more than $6 million from Sotheby's for tax fraud. In December 2023, Attorney General James recovered $1.8 million from the owner of a New York City diner for failing to report more than $650,000 in cash receipts and lying on tax statements. In August 2023, Attorney General James and Acting Tax Commissioner Hiller announced the conviction of a Nassau County auto body shop owner for failing to pay over $700,000 in taxes.

The case was prosecuted by Assistant Attorneys General John R. Healy and Philip V. Apruzzese of the Criminal Enforcement and Financial Crimes Bureau (CEFC). Forensic accounting was performed by Senior Auditor Investigator Brenna Magruder, under the supervision of Deputy Chief Auditor Sandy Bizzarro, and Chief Auditor Kristen Fabbri. Analytical work was provided by Legal Support Analysts Kai Tsurumaki and Brooke Starkey, under the supervision of Deputy Supervising Analyst Jayleen Garcia and Chief Analyst Paul Strocko. CEFC is led by Bureau Chief Stephanie Swenton and Deputy Bureau Chief Joseph G. D'Arrigo.

The OAG investigation was conducted by Detective Jason Johnston, under the supervision of Assistant Chief Samuel Scotellaro and Deputy Chief Juanita Bright of the Major Investigations Unit. The Investigations Bureau is led by Chief Investigator Oliver Pu-Folkes. Both the Investigations Bureau and CEFC are part of the Division of Criminal Justice, which is led by Chief Deputy Attorney General Jose Maldonado. The Division of Criminal Justice is overseen by First Deputy Attorney General Jennifer Levy.