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Owner of steel supply company pleads guilty to sales tax fraud

ALBANY -  Joseph Anza, Sr., one of the principal owners of a leading steel service center covering New York City and the tri-state area, pled guilty February 2 to failing to collect nearly $900,000 in state sales tax and failing to remit the money to New York State between December 1998 through August 2004.

As part of the plea agreement to the charge of Failure to Collect and Remit Sales Tax, a class E felony, Anza and all principal owners of National Steel Supply, Inc., agreed to pay back $895,704.59 in state sales tax, along with $2,483,720.16 in interest and penalties, for a total of $3,379,424.75.

National Steel Supply, Inc., located at 700 Havemeyer Ave., Bronx, with three other distribution facilities located in Queens, Brooklyn, and Newark, New Jersey, sells unfinished steel products, such as steel girders and steel fences, to various small businesses and construction companies.

Anza, 80, a resident of Fort Lauderdale, Florida, pled guilty to the felony charge before Acting Supreme Court Judge Dorothy Chin-Brandt and is scheduled to be sentenced April 13. Anza will receive a conditional discharge.

The agreement also stipulated that Anza, all principals of National Steel Supply, Inc., which include Vincent Anza, Sr., his son, and Dorita Anza, Vincent's wife, who is not a principal, would pay the Tax Department $436,904.00 in unpaid personal income taxes, withholding taxes, corporate franchise taxes and interest and penalties. Over $1 million has been paid to the Tax Department to satisfy this liability and part of the sales tax debt.

According to the agreement, the total amount of all unpaid tax liability owed to New York State, including penalties and interest, is $3,816,328.75. The balance must be paid back over a five-year period based on a scheduled payment plan.