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CAMBRIDGE BUSINESSMAN GUILTY OF TAX FRAUD, MUST PAY BACK NEARLY $1 MILLION
Waterloo Record, Ontario, Canada
April 18 2014
Waterloo Region Record
By Liz Monteiro
KITCHENER - A Cambridge businessman who pleaded guilty Thursday to
tax fraud of nearly $1 million was ordered to pay an equivalent amount
back in fines, taxes and interest.
Simon Poladian, 57, will not serve any jail time as part of his
sentence, Justice John Lynch told Ontario Court.
The prosecution was looking for a jail sentence of nine to 12 months
in addition to fines.
"I feel bad. I screwed up. I paid my dues," said Poladian after
the sentencing.
Court heard how for five years, from 2003 to 2008, Poladian and his
brother Victor, who own and operate S&V Service Centres Ltd. did not
pay taxes in the amount of about $261,000.
False expenses and income not declared amounted to nearly $1 million.
"There was up to $1 million in fraudulent expenses that resulted
in the evasion of $261,000 in federal taxes," said Crown prosecutor
Steven Dollar.
In an agreed statement of facts, court was told that Poladian committed
tax evasion when he wrote cheques representing inflated invoices to
another employee of S&V who had a contract with the Hostess Frito-Lay
Company. The money was paid back to Poladian and should have been
reported back as income but was not.
Similar charges against Poladian's brother Victor were dropped.
Polodian will pay about $481,000 in fines and another half million
in taxes and interest.
Lynch said Poladian must pay the money back by April 30.
"Out of greed, he tried to save himself some money. Now he will pay
taxes and then some," he said.
Lynch added that "despite this transgression, he (Poladian) remains
a trusted member of this community."
In her submissions, co-prosecutor Xenia Proestos said Poladian was
motivated to commit fraud by "pure greed."
"They were trying to get richer by cheating the public," she said.
Proestos said Poladian, who was a law-abiding citizen all of his life
"chose to commit a criminal offence to make money he didn't need."
"It was a choice. They (both brothers) did not have to turn to criminal
activity to make money," she said.
She suggested that a fine wasn't enough for someone like Poladian
who has the means to pay back the full amount.
"Jail really does have a chilly effect," she said.
Poladian's lawyer Frank Addario said his client will pay nearly half
a million in fines and another half million in taxes, interest and
penalties.
"His full repayment and restitution will add up to more than $1
million. It's four times what he evaded," he said.
Addario told the court that Poladian's story was that of a typical
immigrant who came to Canada. He moved to Canada from Syria in 1973
and worked three jobs which included pumping gas, delivering pizza
at night and getting his license mechanic papers.
In 1979, he sponsored his brother to come to Canada and the pair
bought a gas station, Four years later, they increased the business
to include tow-trucking and hydraulic work.
By 2000, S&V was the biggest towing company in Waterloo Region,
said Addario.
Addario said Poladian is an active member of the local Armenian
community and gives generously of his time and money.
"Mr. Poladian knew he had messed up and wants to accept responsibility
and punishment," said Addario, who added that the total amount in
fines and taxes is in an account ready to be given to the government.
http://www.therecord.com/news-story/4473011-cambridge-businessman-guilty-of-tax-fraud-must-pay-back-nearly-1-million/
From: Baghdasarian
Waterloo Record, Ontario, Canada
April 18 2014
Waterloo Region Record
By Liz Monteiro
KITCHENER - A Cambridge businessman who pleaded guilty Thursday to
tax fraud of nearly $1 million was ordered to pay an equivalent amount
back in fines, taxes and interest.
Simon Poladian, 57, will not serve any jail time as part of his
sentence, Justice John Lynch told Ontario Court.
The prosecution was looking for a jail sentence of nine to 12 months
in addition to fines.
"I feel bad. I screwed up. I paid my dues," said Poladian after
the sentencing.
Court heard how for five years, from 2003 to 2008, Poladian and his
brother Victor, who own and operate S&V Service Centres Ltd. did not
pay taxes in the amount of about $261,000.
False expenses and income not declared amounted to nearly $1 million.
"There was up to $1 million in fraudulent expenses that resulted
in the evasion of $261,000 in federal taxes," said Crown prosecutor
Steven Dollar.
In an agreed statement of facts, court was told that Poladian committed
tax evasion when he wrote cheques representing inflated invoices to
another employee of S&V who had a contract with the Hostess Frito-Lay
Company. The money was paid back to Poladian and should have been
reported back as income but was not.
Similar charges against Poladian's brother Victor were dropped.
Polodian will pay about $481,000 in fines and another half million
in taxes and interest.
Lynch said Poladian must pay the money back by April 30.
"Out of greed, he tried to save himself some money. Now he will pay
taxes and then some," he said.
Lynch added that "despite this transgression, he (Poladian) remains
a trusted member of this community."
In her submissions, co-prosecutor Xenia Proestos said Poladian was
motivated to commit fraud by "pure greed."
"They were trying to get richer by cheating the public," she said.
Proestos said Poladian, who was a law-abiding citizen all of his life
"chose to commit a criminal offence to make money he didn't need."
"It was a choice. They (both brothers) did not have to turn to criminal
activity to make money," she said.
She suggested that a fine wasn't enough for someone like Poladian
who has the means to pay back the full amount.
"Jail really does have a chilly effect," she said.
Poladian's lawyer Frank Addario said his client will pay nearly half
a million in fines and another half million in taxes, interest and
penalties.
"His full repayment and restitution will add up to more than $1
million. It's four times what he evaded," he said.
Addario told the court that Poladian's story was that of a typical
immigrant who came to Canada. He moved to Canada from Syria in 1973
and worked three jobs which included pumping gas, delivering pizza
at night and getting his license mechanic papers.
In 1979, he sponsored his brother to come to Canada and the pair
bought a gas station, Four years later, they increased the business
to include tow-trucking and hydraulic work.
By 2000, S&V was the biggest towing company in Waterloo Region,
said Addario.
Addario said Poladian is an active member of the local Armenian
community and gives generously of his time and money.
"Mr. Poladian knew he had messed up and wants to accept responsibility
and punishment," said Addario, who added that the total amount in
fines and taxes is in an account ready to be given to the government.
http://www.therecord.com/news-story/4473011-cambridge-businessman-guilty-of-tax-fraud-must-pay-back-nearly-1-million/
From: Baghdasarian