Former Yonkers GOP Chairman Zehy Jereis Pleads Guilty to Payroll Tax Fraud

eHezi Archives 17 Comments

BHARRARA_PREETWHITE PLAINS, NY – March 4, 2013 — Preet Bharara, the United States Attorney for the Southern District of New York, Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and George Venizelos, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), announced that former City of Yonkers Republican Party Chairman Zehy Jereis pled guilty today in White Plains federal court to a one-count Information charging him with failing to pay more than $60,000 in payroll taxes to the IRS. JEREIS surrendered this morning in the federal courthouse in White Plains and was presented and arraigned before U.S. Magistrate Judge George A. Yanthis. The case was assigned to U.S. District Judge Edgardo Ramos, who presided over the guilty plea hearing this morning. 

Manhattan U.S. Attorney Preet Bharara stated: “On the very day he is surrendering to serve a prison term of 48 months in connection with his conviction on public corruption charges, Zehy Jereis is back in court admitting he defrauded the IRS. Mr. Jereis has a lot to answer for, and today he begins doing so.” 

IRS Special Agent-in-Charge Toni Weirauch stated: “The tax law is very clear – employers are responsible for withholding employment taxes from the salaries of their employees. IRS-Criminal Investigation takes payroll tax fraud seriously because it both deprives the United States government of tax revenue and it reduces the future benefits that employees would otherwise be entitled to, including Social Security and Medicare.” 

FBI Assistant Director-in-Charge George Venizelos stated: “Jereis, in two separate cases, has been shown to have used a business plan that included cheating. Businessmen who succeed by 

committing tax fraud and bribing public officials don’t earn our admiration; they go to prison.” 

According to the Information and statements made during today’s proceeding: 

Jereis was a part owner and operator of a combination car wash, gas station, auto repair shop, and convenience store located in Brooklyn, New York, known as Atlantic Gas and Wash, LLC (“Atlantic”). Atlantic employed a substantial number of employees to wash and repair cars and to sell gasoline and other products at the convenience store. As an employer, Jereis was obligated to withhold and pay to the IRS certain payroll taxes and to file accurate quarterly payroll tax forms that reported the wages and other compensation received by employees of Atlantic, and the taxes withheld. 

During the tax years 2007 through 2009, J Jereis paid numerous employees of Atlantic, including undocumented aliens, a total of at least $403,127 in cash and failed to report such cash payments to the IRS. He did so in order to avoid his legal obligation to withhold taxes and to pay approximately $61,678 in payroll taxes to the IRS. 

Jereis, 41, of Yonkers (Scarsdale P.O.), New York, pled guilty to one count of aiding and assisting in the preparation of false and fraudulent payroll tax returns. He faces a maximum sentence of three years in prison and a maximum fine of the greater of $250,000 or twice the gross gain derived or loss that resulted from the crime. Jereis will be sentenced by Judge Ramos on June 4, 2013 at 11 a.m. 

On March 29, 2012, after a seven-week jury trial before U.S. District Judge Colleen McMahon, Jereis was convicted of conspiracy, bribery, and extortion in connection with a scheme to bribe a Yonkers City Councilwoman to flip her vote on two real estate development projects. On November 19, 2012, Jereis was sentenced in that case to 48 months in prison. He is scheduled to begin serving that sentence today. 

Mr. Bharara praised the work of the IRS-Criminal Investigation and the FBI in the investigation. 

This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Perry A. Carbone and Jason P.W. Halperin are in charge of the prosecution. 

SOURCE: United States Attorney'sOffice – Southern District of New York, U.S. Attorney Preet Bharara.

eHeziFormer Yonkers GOP Chairman Zehy Jereis Pleads Guilty to Payroll Tax Fraud

Comments 17

  1. So I hear that the CLSA is going to take another BS contract with no retro……FD will go to arbitration and win with a raise and retro…………YPD will get screwed again……

  2. “Blue Truth” sounds more like “Blue Rat”.
    Is there anything illegal going on???
    Otherwise it sounds like you’re the one with the agenda.
    Personality conflict??
    Carrying the water for someone else???
    Who knows and who cares. Stop spreading rumors and grow up.

  3. Once again, the article is about official misconduct. It is commonplace in Yonkers and it costs the taxpayers a fortune. These posts however make no reference to laws or rules being broken within city government. Sounds more like personality conflicts. It would be great if specific unlawful acts could be exposed and have the person answer to it. Until then this just doesn’t go anywhere.

  4. You are right there is nothing wrong with it if it were sincere….but it’s not…. eveything he does is to benefit him……he can give a hoot about you cops…..he acts without facts and is a coward….he has written up more people then any other boss…. wrote up his best friend and had his skinny little pale friend go after him to….he has written up quite a few people that did not agree with him……so go eat your turkey leg and grill some hamburgers and when you get some time on the job and really know whats going on you can talk…..

  5. Some of these posts go so far off course its ridiculous. Most of us are interested in hearing about cases of official misconduct and abuses of power in the City of Yonkers. These are things that us taxpayers pay for time and time again. This guy is reporting someone washed the dishes. Notify the I.G.!

  6. Hey “Blue Truth”:
    Why don’t you call Hezi and tell him your story. Let him write a piece about your concerns as so you can vent in the comments section there!
    Your hijacking of EVERY POST diminishes your points as well as lessens your credibility!
    I am sure there is plenty of bullshit in your department because there is plenty of bullshit the Spano Klan keeps shoveling on top of every department and our citizens.
    Why should you and your department be any different?
    In the end, it is the property owner / taxpayer that is getting the real screwing!
    You know Mayor Moron Mike is holding a “Town Hall” meeting at Lincoln High School tonight @ 7:00 pm. Why not go there and try to embarrass, expose, and shame him?
    No wait, to shame someone would mean that the person you are trying to shame has morals and a conscience!
    Never mind……..

  7. Wow, that Captain sits with the men and women of his precinct during all hours of the day and even on holidays, takes the time to clean the precinct himself and treats the cops with respect? What a dope! Doesn’t he know that he is better than those peons and that he should sit in his office all day with the door closed, never make eye contact with anyone and pilfer and pillage till the cows come home? He gonna ruin it for all of us!

    What a roller coaster ride for the men and woman of the Fourth Police Precinct this week. One of the finest Yonkers Police Department’s Commissioners recognized the fact that Captain John Mueller’s boyish smile was just not enough to accomplish the goals of the City, and the department. It was evident that Mueller was pushing his own hidden agenda, and conspiring with his disgraceful friend, P.B.A. President Keith Olson, but that agenda was not cutting it with the department heads.
    Knowing the Commissioner’s unblemished, and unprecedented leadership skills exhibited throughout his entire career, moves were necessary for the good of the department. Reports were that Mueller was constantly over budget, and his summonses were in line with Keith Olson’s shadow job action in which the personnel were purportedly told not to issue summons that would benefit the City. There were also reports that the Captain requested his men and women to contribute to the purchase of a barbecue grill, and requested for certain work orders to be performed within the precinct claiming to the men and woman that it was P.B.A. President Olson that got it done.
    If that were not enough for the transfer, Mueller’s uncanny behavior in the precinct was very noticeable. On occasion, he was spotted washing dishes, cleaning floors, and sitting with the men and woman on all tour, and holidays, attempting to gain their confidence for his own insecurities. He purposely would attend high level meetings dressed in a patrols officer dress shirt, instead of the required Captains’ attire. He also would not attend police ceremonies, or promotions to clearly demonstrate his arrogance toward his superiors. I think any reasonable person would say that his behavior was unusual to say the least.
    So it was clear, that a transfer was necessary for the sake of the precinct, and the community. However, he and Olson did not take the news well, and they acted in concert with each other, and told every deceitful lie they could conjure up to the community, as well as politicians to get a temporary stay of the transfer. A stay that if scrutinized is clearly necessary for the city. The politicians, and the citizens, as well as the members of the P.B.A. will be better served without the despicable behavior of Mueller and Olson. The city and the community were short changed. What they have now is a precinct full of relatively new police officers being cultivated, misled, and lied to every day by these unscrupulous persons.
    Blue Truth

  9. The circumstances behind this admission are just too slimy. The deal is worked out at the eleventh hour; this is the same dude who was in Nick’s back pocket for years; he was the one who was supposedly in the car that held the votes in the 04 senatorial race; he carried the water for Ridge Hill and other smaller developments; held the YGOP in his hands when Nicky and brothers were Republicans and while he is finalizing his deal, Nick is being “threatened” and has to run back to prison to be safe? This is all; what coincidence?

  10. The story says that Jereis was only a part owner of the business. Who were the other owners and why was Jereis the only one who was charged?

  11. Jereis, Annabi and Spano what disgraces. Bharara, the U.S. attorney was seen with the new Yonkers Inspector General about what? More to follow!

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