A 56-year-old man has been arrested for underreporting taxable sales for his Danbury business by nearly $740,000, according to the state Department of Revenue Services (DRS).
Fengdong Chen of Whitestone, New York, failed to remit $46,945 in sales tax collected from customers to the state, the agency said.
DRS’ Criminal Investigation Division (CID) conducted an investigation into Chen, who owns Exquisite Nail Spa Inc.
The investigation found that the theft occurred between March 2022 and June 2024.
Chen was charged with first-degree larceny and 28 counts of willful delivery of a false return.
He was arraigned on April 1 in Hartford Superior Court, and has been released on a $10,000 bond.
“We take violations of the public’s trust in our tax system seriously and will fully investigate these matters on behalf of Connecticut taxpayers,” DRS Commissioner Mark Boughton said. “I want to thank our CID agents for their excellent and professional work on this investigation.”
