Timothy Kjaer Faces 4 to 12 Years in Prison if He Does Not Pay $3 Million in Restitution by September 2028
Suffolk County District Attorney Raymond A. Tierney announced on Sept. 12 that Timothy Kjaer, 49, of Myrtle Beach, South Carolina, formerly of Shoreham and former owner of several auto shop businesses, pleaded guilty to Grand Larceny in the First Degree for failing to report $16 million in taxable sales in order to steal more than $1.3 million in sales tax money from New York State.
“For over a decade, this defendant brazenly stole money from New York State by pocketing the sales tax he collected from customers instead of remitting it to the New York State Department of Taxation and Finance. In total, this defendant stole over $1.3 million by failing to report more than $16 million in taxable sales,” said District Attorney Tierney. “Today’s plea serves as a clear reminder that failing to pay taxes is a serious crime against the public that will not be tolerated. I thank our partners at the New York State Department of Taxation and Finance for continuing to work with my Office to investigate and prosecute tax fraud and to protect taxpayers.”
According to court documents and the defendant’s admissions during his guilty plea allocution, from June 1, 2011 to November 30, 2021, Kjaer failed to submit dozens of Sales Tax returns and falsified others that substantially underreported the taxable sales of several businesses he owned in Suffolk County.
Kjaer owned the following businesses that failed to report sales tax revenue to New York State:
- Automotive Marine & Styling Center, Inc., and Real Deal Auto Inc. – 1165 E. Main Street in Riverhead;
- Not Just Tint, Inc., S&T Autoworks 1, Inc., and S&T Auto Centers, Inc. – 3165 Route 112 in Medford;
- EZ Credit Auto Sales, Inc. – 2910 Route 112 in Medford;
- Universal Auto, Inc. – 1831B Route 112 in Medford; and
- Universal Auto Sales & Service, Inc. – 8B Middle Country Road in Coram.
In total, Kjaer failed to report taxable sales of approximately $16,142,986 in order to steal $1,385,605 in sales tax collected on behalf of New York State. Kjaer admitted that the sales tax money was collected from customers on behalf of New York State and that he intentionally failed to remit those funds as required.
On September 12, 2024, Kjaer pleaded guilty to Grand Larceny in the First Degree, a Class B felony, before Acting Supreme Court Justice Stephen Braslow. As part of his plea, Kjaer will be required to pay $3,000,000 to New York State or face imprisonment. Kjaer is due back in court on September 12, 2025, and he is being represented by Matthew Tuohy, Esq.
This case was prosecuted by Assistant District Attorney Jennifer Sacks of the Financial Crimes Bureau, and the investigation was conducted by Assistant Chief Investigator Danielle Paolucci of New York State Department of Taxation and Finance with additional forensic audit assistance from the New York State Department of Taxation and Finance.
