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The Bobster
03-22-2017, 03:52 PM
http://nypost.com/2017/03/22/spa-castle-owners-busted-for-tax-fraud/

Spa Castle owners busted for tax fraud
By Joe Parziale and Emily Saul
March 22, 2017 | 3:18pm

https://thenypost.files.wordpress.com/2017/03/170322-spa-castle-owners-feature.jpg?quality=90&strip=all&w=664&h=441&crop=1
Daniel, Steven and Victor Chon
Ellis Kaplan


The owners of the notorious Queens bathhouse​ ​Spa Castle were busted Wednesday for failing to report millions in revenue to tax authorities​, the state attorney general said​.

Owner Steve Chon pleaded “not guilty” to two counts of second-degree grand larceny, eight counts of second-degree criminal tax fraud and one count of third-degree criminal tax fraud​, at an appearance Wednesday in Queens Supreme Court​.

https://thenypost.files.wordpress.com/2017/03/spacastle.jpg?quality=90&strip=all&w=300
The notorious Queens spa is located on 11th Avenue in Queens.
J.C. Rice


Chon’s siblings, Victor Chon, Daniel Chon and Stephanie Chon also pleaded “not guilty” to the various charges.

Chon is accused of failing to remit $621,000 in sales taxes, $207,000 in withholding taxes, $610,000 in corporate taxes, and $131,000 in Metropolitan Transportation Authority Surcharge taxes, Attorney General Eric Schneiderman said.

Prosecutors said the spa has made around $22 million per year since 2013.

“Companies that fail to pay their fair share of taxes leave ordinary New Yorkers to foot the bill,” AG Schneiderman said in a statement following the court appearance. “We will not tolerate irresponsible business owners who cheat the system and undermine our tax law.”

The 100,000 square foot spa in College Point has previously been likened to “the set of a porn movie,’’ where anything goes and strippers relax ​on weekends ​after a hard night on stage.

The bathhouse most recently made headlines when a now-ex high school principal forced staffers to spend the day there under the guise of professional development.​​

Chon and his siblings each posted $100 bond :mad:, and will return to court June 1.