Two more Larchmont retail businesses are in trouble, but not for the reason you probably think.
The Westchester District Attorney’s Office says Denise and Christopher MacDonald, who own the Twinkle Toes childrens stores in Larchmont and Rye, and CWM Horticultural Services, a landscaping company in Larchmont, failed to pay their personal and corporate sales taxes for the last 11 years.
The couple, who live in Larchmont were arraigned Thursday on charges of second-degree grand larceny and two counts of repeated failure to file personal tax returns. Denise MacDonald also was arraigned with one count of third-degree grand Larceny and repeated failure to file corporate tax returns.
You may recall the 2008 incident involving the same couple, (scroll down after clicking) arrested for taking a Liz Feld for State Senate sign from the ground.
District Attorney’s office and the state Department of Taxation and Finance conducted a 12 month investigation before filing charges..
Christopher MacDonald 53, and Denise MacDonald, 47, also own Wish Home Styles, a home furnishings store with a sales location in Rye.
Prosecutors say the couple owes more than $500,000 in unpaid state sales tax and unpaid personal income tax. They are accused of keeping sales tax from 1998 to 2009 and not filing an income tax form since 2004.
Bail was set at $10,000 cash for Denise MacDonald and $5,000 cash for Christopher MacDonald, and bail was apparently met. Their next court appearance is scheduled on Sept. 28. They face up to fifteen years in state prison.
Chris served as Volunteer Fire Chief in Larchmont. Denise has been President of the Larchmont Chamber of Commerce.
Press release from Westchester DA’s Office
Henry— based on what I read, it was not a criminal case – it was a
settlement without admission of liability. Judge signs the order
agreed to by the parties – “judge orders payment” is a technicality.
Are you covering every IRS audit and settlement? Just saying. In addition, action was brought
on by a “whistleblower” – a former (disgruntled?) employee – who
stands to benefit financially.
The court date is coming up soon. Please keep us posted….She is a very nice woman I wish her the best.
Why did the comments stop so suddenly? I find it hard to believe that people aren’t still commenting on this story and the one referenced in the other commentary!?
I’m sorry to hear that Chris is in trouble. I have been one of his customers for years and he has handled many jobs for me very well. His work with the Fire Department and the Chamber of Commerce are also to his credit.
Jeff…..how can you even begin to defend Jaeger? He committed FRAUD. Plain and simple. He was laughing all the way to the bank at OUR expense. Yes, the two cases are different, it’s obvious both lack morals (that is, if the Macdonalds are found guilty). Jaeger should be stripped of his license to practice medicine and he should have a few square meals behind bars.
The Jaeger case is totally different from this one. Jaeger was trying to convert his practice into a primary care service, but according to the United States Dept. of health, he never was able to. In Jaeger’s mind, he does think that he was running a primary care service. In court, he would possibly be able to argue that he was right. However, he settled, so we will never see that court case.
THe Macdonalds were purposedly charging people sales tax to make money.
editrix correction Jeff, they were charged, not found guilty.
Fom I think you need to re-read the story. This was a settlement as a result of charged brought by the US Justice Department for fraud. When Jaeger commits fraud against Medicare and Medicaid he steals from you, me and every taxpayer. Not sure why you categorize the whistle blower as a disgruntled employee – perhaps they just have the morals that Jaeger lacked. This is a great example of where the whistle blower laws work. You need to stop defending the indefensible.
With all due respect FOM, are you a personal friend of Larry Jaeger? Here’s the entire story below…you don’t agree to pay $2.7 if you are innocent….as a tax payer I’m tired of getting the short end of the stick……
ARTICLESEVENTSPLACESSEARCH
Local Doctor Ordered to Reimburse More Than $2 Million in False Claims
A federal judge orders Lawrence Jaeger to pay back $2.75 million in false claims dating back to 2001.
By Rasheed Oluwa | July 9, 2010
A local dermatologist must pay $2.75 million in damages for Medicaid and Medicare fraud, a federal judge has ruled.ÂÂ
Dr. Lawrence Jaeger, a Larchmont resident and owner of the Community Medical and Dermatology Center and Advanced Dermatology of New York, agreed to the settlement, which was approved last month by U.S. District Judge Paul Crotty.
The settlement represents $2,674,000 false claims that were made under federal and state Medicaid claims and $76,000 in false claims that were made under federal Medicare claims.
State and federal authorities were alerted after a former physician’s assistant at Advanced Dermatology filed a case under the whistleblower provision of the False Claims Act.ÂÂ
A women who answered the phone at Jaeger’s New York office Thursday said he was unavailable for comment.ÂÂ
“Healthcare fraud drains the system of billions of dollars of hard-earned taxpayer money,” Preet Bharara, U.S. Attorney for the Southern District of New York, said in a statement. “Doctors are supposed to treat patients, not defraud the public. The Southern District of New York will continue to work with our state and federal law enforcement partners to aggressively enforce the laws prohibiting healthcare fraud.”
Court records indicate that Jaeger, who has one office in Manhattan and two in the Bronx, earned certification from the state Department of Health by falsely claiming that his facility’s service would be primary care services. Jaeger was able to increase his Medicaid reimbursement rates from $30 to $150, according to the U.S. Attorney’s Office.
The complaint, originally filed in 2007, also states that Jaeger instructed his staff to spend a minimum of two to three minutes with his patients, but indicate on billing forms that they spent 20 to 30 minutes. Staff members were also ordered to exaggerate the level of services provided to patients in order to make reimbursements higher.
Staff members were given increased hourly rates based on the number of patients they saw in a given day, federal prosecutors said.
The scheme resulted in tens of thousands of false claims filed to the Medicaid and Medicare programs and millions of dollars disbursed illegally.
The complaint referenced claims filed since 2001, but prosecutors declined to offer specifics on when the fraud took place.
This case was handled by the Southern District of New York’s newly formed Civil Frauds Unit, working together with the Medicaid Fraud Control Unit of the New York State Office of the Attorney General.
The restitution will be paid quarterly for five years and is secured by real property, prosecutors said.
Henry— based on what I read, it was not a criminal case – it was a
settlement without admission of liability. Judge signs the order
agreed to by the parties – “judge orders payment” is a technicality.
Are you covering every IRS audit and settlement? Just saying. In addition, action was brought
on by a “whistleblower” – a former (disgruntled?) employee – who
stands to benefit financially.
I am surprised that no one picked up this story of yet another Larchmont resident without morals. His children attended our local elementary schools. Couldn’t agree more with ‘Carolina’. He should be behind bars……..
Local Doctor Ordered to Reimburse More Than $2 Million in False Claims
A federal judge orders Lawrence Jaeger to pay back $2.75 million in false claims dating back to 2001.