A New York-based Subway franchisee has pleaded guilty to grand larceny and welfare fraud charges after failing to pay $500,000 in sales tax collected from 10 Subway locations, Manhattan District Attorney Cyrus R. Vance Jr. has announced. Mazumder's Subway stores are located in Manhattan, Brooklyn and the Bronx.
Mazumder will face jail time as well as pay nearly $1.5 million in restitution, interest and penalties. This amount includes more than $1.3 million in sales tax plus interest and penalties owed over a 6½ year period as well as $59,000 in personal income tax, plus interest and penalties owed for tax years 2004 through 2008. He also will repay $65,000 in the cost of Medicaid benefits to New York City for public health insurance since 2004. The franchisee faces 50 weeks of weekend incarceration.
Les Winograd, spokesman for Subway restaurants, provided the following statement"
The Subway chain is made up of thousands of individual business men and women who are committed to serving their customers and their communities. While we do not condone any of the acts that Mr. Mazumder has pled guilty to, as this matter is still under the jurisdiction of the legal system, it is inappropriate for us to comment further at this time.
