Colonie car dealer convicted after failing to pay $160K in taxes

ALBANY, N.Y. (NEWS10)-- The owner of G&A Auto Care Inc. and the business were sentenced for reportedly stealing over $160 thousand in sales tax owned to New York, the Office of the Attorney General reported. Guy Kennedy Nicolas was sentenced to five years of probation and has to pay back the full amount of stolen taxes, the OAG said.

According to the OAG, as the only person responsible for sales tax at his business, he was required to report all taxable sales from selling cars, from the dealership and to file sales tax returns on a yearly basis. In April 2024, Nicolas was arrested after an investigation determined he decided not to report over $2 million in sales to New York. 

At the time of his arrest, New York Attorney General Letitia James and Acting Commissioner of Taxation and Finance Amanda Hiller alleged he only filed two business tax returns for the dealership over 11 years. He was arraigned and indicted on second-degree grand larceny, third-degree criminal tax fraud, and four counts of fourth-degree criminal tax fraud charges.

According to the OAG, Nicolas and his business pleaded guilty to the second-degree grand larceny charge in November 2024.

"When New York businesses fail to pay taxes, they cheat New Yorkers out of critical resources that support education, health care, transportation, and other essential services," said Attorney General James. "Guy Nicolas and his business violated the law and failed to pay over $160,000 in sales tax, and he was ordered to pay back what he owes. My office will continue to hold anyone accountable who attempts to defraud the tax system and cheat hardworking New Yorkers."

As part of their sentences, both defendants, the business and Nicolas, admitted to the full amount of sales tax owed. His business was also sentenced to a three-year conditional discharge.

"The sentencing of Mr. Nicolas sends a strong message that dishonest business practices will not be tolerated in New York State," said New York State Police Superintendent Steven G. James. "This sentencing demonstrates that collaborative work among law enforcement partners is vital in reaching the same goal: holding those who break our laws accountable."

The case was prosecuted by Assistant Attorneys General John Healy and Philip Apruzzese of the Criminal Enforcement and Financial Crimes Bureau.