Forest Hills Car Dealer Who Stole $2.3 Million Will Be Jailed, Deported

A Forest Hills used car dealer who ran his business on Long Island was sentenced to six months in jail and five years probation for attempted grand larceny of more than $2 million.

was a naturalized Israeli citizen, fled to Canada in 2007 after he was caught underreporting the value of cars sold at his Long Island dealership. In doing so, Michaelov pocketed more than $2.3 million in pilfered tax money.

Queens District Attorney Richard Brown and his team fought a four-year legal battle to extradite Michaelov from Canada so he could face the music.

“When consumers pay sales taxes they expect those funds to go into the public treasury – not into the business owner’s pockets. In this case, the defendant under reported his taxable retail sales of cars to the tune of $28 million,” Brown said. “By pretending to have sold fewer vehicles then he actually did, the defendant fraudulently pocketed approximately $2.3 million in sales taxes owed to New York State.”

New York State Department of Taxation Commissioner Thomas Mattox said the arrest was a great example of cooperation between local, federal, and international law enforcement teams.

“This case exemplifies how governmental agencies cooperate at all levels to apprehend tax evaders and collect what is due and owing to the taxpayers of New York State,” Mattox said. “We will continue to cooperatively pursue the apprehension and prosecution of criminals who steal from law abiding New Yorkers.”

As part of his sentence, Michaelov agreed to make restitution of the full amount of funds he embezzled. He plead guilty on Oct. 5, and turned over $1.5 million in addition to $219,000 worth of assets that had been seized at the time of his arrest.

After his sentence is served, he will be turned over to Immigration agents to be deported.