Manhattan District Attorney Robert M. Morgenthau announced today that a Manhattan investment fund manager has pleaded guilty to failing to file New York State and City personal income taxes by claiming to be a Florida resident.

The defendant is FREDERICK E. GUEST, II, a fund manager for Guest Capital, LLC.  GUEST claimed that he was a Floridian and therefore not subject to New York State and City personal income taxes.  In fact, during the time period GUEST maintained a residential apartment at 10 West 60th Street, leased an apartment at 60 West 60th for business purposes and had a home in Southampton, New York.

As a result of his plea today, GUEST paid $1,422,368 (including taxes, penalties and interest) to New York State and City taxing authorities.  In addition, GUEST will be required to pay $20,000 in criminal fines.  

GUEST pleaded guilty to two misdemeanor counts of a violation of Tax Law §1801(a) for failing to submit required 2004 and 2005 New York State/New York City personal income tax filings.  These pleas of guilty stem from an investigation relating to GUEST’s failure to file 1999 through 2006 New York State and New York City personal income tax filings and to pay taxes owed in those tax years.

The investigation leading to today’s guilty pleas was conducted by Gilda I. Mariani, Chief of the District Attorney’s Money Laundering and Tax Crimes Unit and  Assistant District Attorney Maurice Mathis assisted by Senior Accountant Investigator Michael Lentini.

Mr. Morgenthau thanked the New York State Department of Taxation and Finance Commissioner Robert L. Megna, Deputy Commissioner William J. Comiskey, Chief Counsel Peter Bloch, Revenue Crimes Bureau Director Bruce Kato, and Auditor Jillian Clark.

Mr. Morgenthau also thanked the New York City Police Department and Commissioner Raymond Kelly and District Attorney Squad Commander Captain Joseph Finn and Detective Robert Mistretta.

 

Defendant Information:  Frederick E. Guest, 70, 10 West 60th Street, New York, NY

 

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