Former LI Business Owner Failed To Report $16M In Taxable Sales: DA

SHOREHAM, NY — A former Long Island businessman from Shoreham pleaded guilty Thursday to first-degree grand larceny after failing to report $16 million in taxable sales in order to steal more than $1.3 million in sales tax money from New York State, Suffolk County District Attorney Ray Tierney said.

Timothy Kjaer, 49, currently of Myrtle Beach, South Carolina, is the former owner of several auto shop businesses on Long Island, the DA said.

According to court documents and the defendant’s admissions during his guilty plea allocution, from June 1, 2011 to November 30, 2021, Kjaer failed to submit dozens of sales tax returns and falsified others that substantially underreported the taxable sales of several businesses he owned in Suffolk County, Tierney said.

According to the DA, Kjaer owned the following businesses that failed to report sales tax revenue to New York State:

- Automotive Marine & Styling Center, Inc., and Real Deal Auto Inc., located at 1165 E. Main Street
in Riverhead;

- Not Just Tint, Inc., S&T Autoworks 1, Inc., and S&T Auto Centers, Inc., located at 3165 Route 112
in Medford;

- EZ Credit Auto Sales, Inc., located at 2910 Route 112 in Medford;

- Universal Auto, Inc., located at 1831B Route 112 in Medford; and

- Universal Auto Sales & Service, Inc. – 8B Middle Country Road in Coram.

In total, Kjaer failed to report taxable sales of about $16,142,986 in order to steal
$1,385,605 in sales tax collected on behalf of New York State, Tierney said. Kjaer admitted that the sales tax money was collected from customers on behalf of New York State and that he intentionally failed to remit those funds as required, the DA said.

On September 12, Kjaer pleaded guilty to first-degree grand larceny, a Class B felony, before Acting Supreme Court Justice Stephen Braslow, the DA said.

As part of his plea, Kjaer will be required to pay $3 million in restitution to New York State or face imprisonment, the DA said. Kjaer is due back in court on September 12, 2025, and he is being represented by Matthew Tuohy.

"I'm very happy with the result and agreement," Tuohy told Patch. "The DA's office was very thorough, diligent, and organized in what they presented us with. In the end, the plea bargain was beneficial and fair to my client."

Tierney added: "For over a decade, this defendant brazenly stole money from New York State by pocketing the sales tax he collected from customers instead of remitting it to the New York State Department of Taxation and Finance. In total, this defendant stole over $1.3 million by failing to report more than $16 million in taxable sales. Today’s plea serves as a clear reminder that failing to pay taxes is a serious crime against the public that will not be tolerated. I thank our partners at the New York State Department of Taxation and Finance for continuing to work with my office to investigate and prosecute tax fraud and to protect taxpayers."