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Former Major World Managers Plead Guilty to Corporate Tax Fraud

July 26, 2018 By Tara Law

Two former senior managers of embattled car dealership chain “Major World” pleaded guilty yesterday to filing a false corporate tax return for calendar year 2009.

The pair admitted to under reporting their income and inflated the business’s expenses to avoid paying the taxes owed, and now face up to three years of prison apiece, the U.S. Attorney’s Office said. 

Harold Bendell, 64, or Englewood Cliffs, N.J. and Bruce Bendell, 64, of Roslyn, N.Y., were managers of Major Automotive Companies, Inc., which operates as “Major World.”

On or around Aug. 10, the pair filed a corporation tax return for 2009 that did not report approximately $1,417,814 in gross receipts that Major Automotive had received, the U.S. Attorney’s Office said. They also did not report $2,116,000 in cash payroll expenses, for which Major Automotive did not pay payroll taxes.

The pair resigned from “Major World” before pleading guilty and paid more than $3,888,267 in restitution to the Internal Revenue Service, the U.S. Attorney’s Office said.

United States Attorney Richard Donoghue said that the prosecution of the pair indicated his office’s commitment to catching individuals who cheat on their taxes.

“By their pleas, Harold and Bruce Bendell admitted that they concealed millions of dollars of their company’s income and avoided paying their fair share of taxes to the United States government,” United States Attorney Richard Donoghue said.

IRS-CI Special Agent-in-Charge James Robnett discussed the importance of protecting the tax system, which is based on voluntary compliance.

“Harold and Bruce Bendell took unlawful advantage of the system that financially impacts all Americans,” Robnett said. “Our special agents along with the U.S. Attorney’s Office are committed to protecting the system that contributes to our way of life.”

The incident is one of two major scandals to hit Major World in the last few years. 

The Department of Consumer Affairs filed charges against Major World for deceptive sales practices in March 2017. The department said that the company has a longstanding practice of fooling customers with deceiving lending practices and falsified vehicle histories.

In December, the department increased the damages sought against the company from $1.5 million to $36.5 million.

email the author: news@queenspost.com

8 Comments

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The People

Yep, and everyone else are just liars. All your paperwork was legit and they gave you an awesome deal I’m sure.

Phil Mancuso

They are also owners of City World Ford and City World Toyota! And both stores are very corrupt! They need to get rid of the old scammers that still work there and replace them with people who will turn their reputation around!

11
Michael Ruiz

Be ware of their other dealership in the Bronx! City World Ford on Boston road! Same staff for years, same tactics! Altering credit applications and forging signatures on a daily basis!

12
Anonymous

I wish they would unload their new cars in their huge lot instead of on busy Northern Blvd.

Sunnyside Loves Me Long Time

A applaude the Sunnyside Post for following this story. If you Google it you’ll see that they are the only news organization in the five boroughs doing so. My guess is they don’t want to disrupt the revenue stream for the extensive advertising this now criminally convicted dealership does. That’s wrong. Consumers need to be alerted to their fradulant and predatory ways so they can make a more informed decision on where to spend their vehicle dollars. Keep up the good work Sunnyside Post and keep us informed as this story develops.

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