One of the honchos of Spa Castle pleaded guilty Thursday to attempted tax fraud charges, while the notorious Queens bathhouse agreed to pay $2.5 million for cheating the system by under-reporting income.
Daniel Chon was sentenced to a three-year conditional discharge — and no jail time — after copping to felony attempted criminal tax fraud charges.
The College Point spa mecca, meanwhile, was convicted of criminal tax fraud charges and agreed to pay the millions in restitution and damages as part of a simultaneous civil action.
The state Attorney General’s Office brought a slew of indictment charges against Spa Castle, Chon and several members of his family last year, claiming they failed to pay $1.5 million in taxes by under-reporting revenue.
Weinstein noted, however, that Chon pleaded guilty to just one count related to attempting to not remit sales tax “in excess of $10,000.”
The cases against Chon’s siblings — Victor Chon, Stephanie Chon and Spa Castle owner Steve Chon — were all dismissed with prejudice, according to Weinstein.
“We have zero tolerance for tax cheats who leave New Yorkers to foot the bill,” Attorney General Barbara Underwood said in announcing the pleas. “The defendants orchestrated a multi-million dollar scheme to defraud taxpayers.”
Wow, this is zero tolerance?