NEW YORK (Reuters) - A project director who helped broker the 2005 sale of Riverside South Properties, one of New York City's largest real estate transactions, has pleaded guilty to a tax evasion charge but is not expected to face prison time.
U.S.
Barry Gross, 46, on Wednesday admitted to failing to file unincorporated business taxes, a Class A misdemeanor, the office of Manhattan District Attorney Robert Morgenthau said.
The Lawrence, New York resident will be sentenced on February 16, 2010 to a conditional discharge if he pays an estimated $119,000 to $135,000 of state and city taxes, interest and penalties on his $1 million bonus for the transaction.
Prosecutors said Gross had disguised the bonus as a fee made payable to a shell company he controlled, Itamar Capital.
A condition of the plea is that a Hong Kong finder involved in the transaction pay $5 million in state and city taxes on a $17.5 million finder's fee.
Benjamin Brafman, a lawyer representing Gross, did not immediately return a call seeking comment.
Saturday, January 9, 2010
New York City 2010
