New York State Attorney General Eric Schneiderman charged the owners of Spa Castle with tax fraud Wednesday after they allegedly failed to pay $1.5 million in taxes.
The Chon family, which runs the College Point spa, underreported the business’ income between 2010 and 2013, according to the attorney general.
“We will not tolerate irresponsible business owners who cheat the system and undermine our tax laws,” he said in a statement.
Schneiderman’s team and investigators from the state Department of Taxation and Finance were able to find the records following a search warrant that was issued in 2015, the attorney general said.
Alfredo Mendez, the attorney representing the Chon family, said his clients were released on bond Wednesday.
“They deny [Wednesday’s] allegations and will address them in court at the appropriate time,” he said.
If convicted, the four members of the Chon family face up to 5 to 15 years in prison.
Last year, the spa was temporarily shut down following an investigation into a near drowning incident that involved a minor.