About $1 million was seized from two Indian American liquor store owners by the federal agencies for following illegal practices to evade state tax.
According to a report by Chicago Tribune, Columbia Liquors in south Hammond owned by Indian American couple Shreyas Patel and Dipteben Patel allegedly evaded Illinois excise tax on liquor purchases by buying goods directly from the owners of an Indiana liquor store and sold it across the state.
Taking advantage of the difference in the tax system, Patels bought millions worth liquor directly from three Indiana distributors and resold it for cash to 17 stores across the state according to the forfeiture complaint.
According to the complaint, Illinois liquor stores are not allowed to purchase liquor from stores other than Illinois licensed distributor or manufacturer.
The federal case charged against the Patels says that they “devised a scheme to defraud or obtain money by false or fraudulent pretenses.”
However, the Patels or their business has not been charged criminally.
The authorities seized the money in early June from Columbia Liquors and its account in at First Merchants Bank in Munster, a vehicle, and residence. These are now in the custody of the Secret Service. About $52,000 was also seized in cash from their home.
“Specifically, the Patels, through their Indiana liquor store, purchased large quantities of liquor and sold them to seventeen Illinois liquor stores, at least five of which they own, for subsequent retail sale thereby depriving the State of Illinois of excise and sales taxes to which it was entitled,” Assistant U.S. Attorney Orest Szewciw charged in the federal complaint as reported by a local newspaper The Times.
“By selling liquor purchased without payment of excise taxes in Illinois, the Illinois liquor-store owners, including the Patels, increased their profits. In furtherance of the scheme to defraud or obtain money by false pretenses, the Patels caused the use of interstate wire communications.”