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New York Businessman Confesses To Tax Evasion And Mail Fraud

A Niagara Falls businessman admitted to tax crimes that amounted to more than $161,000. Admitting to tax crimes that cost the Internal Revenue Service $161,000 in 2007, Niagara Falls businessman John J. Gross Jr. pleaded guilty July 26 to felony tax evasion and mail fraud. The 75-year-old plumbing contractor admitted to paying off purchasing agents at local businesses, cheating on his taxes and using fraudulent bids to get work contracts, the Buffalo News reported.

The crimes were committed while Gross was running a Niagara Falls plumbing and heating company even though his son David owns the company on paper, the newspaper said.

Agents from the Buffalo bureaus of the FBI and IRS conducted a long investigation on Gross that is still ongoing, First Assistant U.S. Attorney James P. Kennedy told the newspaper. They also found that Gross kept two sets of books in 2007 to cheat the government out of more than $161,000, the newspaper reported.

Gross’ sentencing is scheduled for Nov. 30, and he faces 30 to 37 months in federal prison. He also could be ordered to pay thousands in fines, restitution or forfeitures.  

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