11 city brokers face tax evasion charges
March 27, 2008 02:30PM By Lauren Elkies
Ten veteran New York City residential real estate brokers and one commercial broker face charges of tax evasion by the Albany County District Attorney.
The most notable broker, as reported by the Post, is Brown Harris Stevens' Kathy Sloane, 62. The senior vice president and managing director is one of the brokerage's top producers, and claims on her company Web page to have brokered more than $200 million in sales in 2007 alone. Sloane, working out of the 445 Park Avenue office, has handled sales for the Clintons and was involved in the sale of Jackie Onassis's apartment.
Four New York City defendants work for the Corcoran Group, two in the same 660 Madison Avenue office. Dennis Hughes, 58, a senior vice president and associate broker, was a member of Corcoran's multi-million dollar club in 2001, 2002 and 2003. Another member of the multi-million dollar club, Gabriel Bedoya, 50, is a vice president and associate broker with a real estate investment firm in addition to his Corcoran business.
The other two Corcoran brokers work in Brooklyn. Miriam Sirota, 37, is a senior vice
president and associate broker based in the firm's new Williamsburg
office at 241 Bedford Avenue. She says on her Web page that she is
"donned the 'Queen of the East Village' and the 'Baroness of Bed-Stuy.'" Patrick Brennan, 39,
is a senior associate broker at the 125 Seventh Avenue office in Park
Slope. He has also bought, renovated and sold several Brooklyn
properties, his Web page indicates.
The DA's office said the brokers are part of a group of 31 real estate professionals who allegedly failed to report a total of more than $13 million in income and allegedly evaded more than $650,000 in state income taxes.
Real estate agents, as independent contractors, are responsible for filing their own personal income taxes. Twenty-nine of the 31 face felony charges for failing to file returns for at least three consecutive tax years, and two will be charged with a misdemeanor for failing to file in a single tax year or non-consecutive years.
Until the city 11 brokers are arraigned next Thursday, the DA's office said it would not release the specific charges against each broker or how much each allegedly owes.
If convicted, brokers charged with felonies could serve as much as four years in a state prison. Misdemeanor charges could lead to prison sentences of up to a year.
Another defendant from Brown Harris Stevens is Scott Moore, 51, referred to by the district attorney as Gerald Scott Moore, a senior vice president in the 1926 Broadway office on the Upper West Side. Moore, who has homes in the Flatiron District and Fort Lauderdale, Fla., has been in the business for nearly a decade.
Sotheby's International Realty's Camille McKinley, 46, is another alleged tax evader. McKinley works out of the office at 379 West Broadway in Soho. She joined the company as an associate broker in 2000.
McKinley said of the charges: "It is my understanding that consideration was being given to exclude me from this group … the status is that while there was an oversight, and delay -- due to issues with my previous accountant -- all of my returns are completely up to date, filed, and fully paid in years where there were taxes due. There are years where I was in fact owed a refund."
A Warburg Realty Partnership associate broker, Joseph Carris, 77, is also allegedly delinquent. Carris has been in the business for 25 years and at Warburg since 1992. He is based at 969 Madison Avenue on the Upper East Side.
An office manager at Coldwell Banker De Simone Realty in Staten Island also made the list of defendants. Sarah Brady, 61, has been in the business for 15 years.
The city's lone commercial broker who faces charges is Richard Brickell, 47, of Joseph P. Day Realty Corporation at 9 East 40th Street. Brickell is a vice president at the company, which does commercial leasing, property management, real estate analysis and investment sales.
The affiliation of another real estate pro on the list, Brooklyn-based Solomon Knopf, 50, could not be immediately determined.
Only McKinley responded to requests for comment.
Note: Correction appended
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Comments
Anonymous
OOOOPS I did it again...
Comment #1 Posted By: Anonymous 03/27/08
Anonymous
Slaon and others will probably claim that they dont have to pay NY tax since they reside in Florida and here only 6 months out of the year. That and the Clintons will work. Derick Jeeter had the same issue with 8 mil in taxes and that disapeared form the headlines.
Comment #2 Posted By: Anonymous 03/27/08
Anonymous
An excerpt from Gabriel Bedoya web page at Corcoran. Man, does Corcoran teach them right. Honesty, integrity and unparalled standards are just some of the words that could be used to describe working with Gabriel Bedoya. His knowledge of the Manhattan and Southern Florida real estate markets has consistently earned him the highest honor and recognition bestowed by the Corcoran Group. He is also a proud member of Corcoran’s Top Multi-Million Dollar Club.
Comment #3 Posted By: Anonymous 03/27/08
Anonymous
someone posted an irrelevant subject on this thread to distract the mind from the word "INTEGRITY" but no unrelated real estate article will ever distract the mind of potential buyers and sellers of the word INTEGRITY
Comment #4 Posted By: Anonymous 03/27/08
Anonymous
How they smile.... Bubba is waiting.
Comment #5 Posted By: Anonymous 03/27/08
Anonymous
How come Michael Shvo isn't up here?
Comment #6 Posted By: Anonymous 03/27/08
Anonymous
Any information for Curbed.com would be greatly appreciated. phone: +917.7764301 email: domain@lockhartsteele.com address: 110 Rivington St. city: New York state: NY postal-code: 10002 or Arak, Joey joeyarak@gmail.com 324 East 13th Street New York, New York 10003 United States 917 8877344
Comment #7 Posted By: Anonymous 03/27/08
Anonymous
they smile because they left all the other tax payers holding the bag
Comment #8 Posted By: Anonymous 03/27/08
Anonymous
it always makes me nervous when brokers smile like that, I usually hold on tight to my wallet
Comment #9 Posted By: Anonymous 03/27/08
Anonymous
I don't konw if I agree with the way The Real Deal is running this tax evasion story. I wonder if it is fair to expose these brokers like that and all the industry. Maybe I think The Real Deal should had protect their names and printed the story without the names and without the photos. I think it was too much!
Comment #10 Posted By: Anonymous 03/27/08
Anonymous
Then they would be called Curbed.com
Comment #11 Posted By: Anonymous 03/27/08
Anonymous
what lowLifes
Comment #12 Posted By: Anonymous 03/27/08
Ava
I always cringe when brokers (agents) brag publicy about how much they sold - getting their names in the paper or on TV shows. An invite into a tax autit if there ever was one........
Comment #13 Posted By: Ava 03/28/08
Anonymous
I have a problem with the form that Real Deal is running this tax evasion scandal. It is like a criminal session of a newspaper.The Real Deal is a channel of communication for the real estate industry to keep everyone informed and well educated about the real estate market. I do think it is a good story and it can be informative if it would talk about the problem itself, not only about the criminal aspect of it. I think the story explores too much the names of the brokers without talk about the problem of evasion and what was these people did wrong. It is an attack to these brokers because they make a lot of money and they are famous in the industry. I think also it is very sad the newspaper that lives from the brokers to attack the brokers like that. I wonder if there was an investigation about the revenue of the Real Deal if it would be all transparent as they report on the financials of these brokers. Let’s be informative but also respectful of the industry that feeds you.
Comment #14 Posted By: Anonymous 03/28/08
Anonymous
I bet you Donald Trump feels the same way about Rosie.
Comment #15 Posted By: Anonymous 03/28/08
Anonymous
I think this is going to open a big can of warms as real estate brokers are contractors and responsible for their taxes without supervision from their firms. Even at restaurants today, they file 15% of the total checks each waiter rings so that they can pay taxes on it. Great story. It was inevitable.
Comment #16 Posted By: Anonymous 03/28/08
Anonymous
In regards to the person who posted long "why did The Real Deal report on this?" I say, because it's news. Its informative. It warns other brokers not to be cheat on their taxes. Also, by asking them not to cover this, its like telling the Wall St. Journal, don't report on the bad deeds that the finance sectors does, because they are its audience. I say kudos to the Real Deal.
Comment #17 Posted By: Anonymous 03/28/08
Time to Pay the Piper!
Let's face it, the IRS & the NYS tax authorities are going to look into every NY broker with a second home in Florida who claims it as a primary residence.
Comment #18 Posted By: Time to Pay the Piper! 03/28/08
Anonymous
I think its a great story, woth reporting. Keep up the good work Real Deal.
Comment #19 Posted By: Anonymous 03/28/08
Anonymous
"Taxes are only for the little people." (Leona Helmsley, RIP)
Comment #20 Posted By: Anonymous 03/29/08
Anonymous
Personal responsibility notwithstanding, until our politicians (arguably the most corrupt among us) do the right thing and dismantle the archaic and oppressive monster we call the IRS, these stories will continue. The system stinks folks and to you holier-than-thou accusers who are just a little too quick to condemn, be careful to always dot every “i” and cross every “t” and I mean always. There should be no question that we need a simpler, more rational, and fair system of taxation—one that does not need a Gestapo collection unit to make it work. There is the “Fair Tax” to name just one good alternative and there are others, all of which are far superior to what we have.
Comment #21 Posted By: Anonymous 03/30/08
Anonymous
This wasn't the IRS, it was NYS.
Comment #22 Posted By: Anonymous 03/31/08
Anonymous
Let those who paid every tax dollar owed cast the first stone at these 31. Not one stone shall be cast because we are all taking part in a tax system that's rotten to the core by requiring otherwise honest people to lie, cheat and steal!
Comment #23 Posted By: Anonymous 03/31/08