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Lackawanna businessman gets five years in sales tax case

A Lackawanna businessman has been sentenced to five years probation and must pay $124,000 in restitution after pleading guilty to two felony charges stemming from his failure to send sales tax money to the state after he collected it from his customers, State Attorney General Eric T. Schneiderman and State Commissioner of Taxation and Finance Jerry Boone announced.

Mogeeb Nagi, former owner of Mid-East Enterprises Inc. and doing business as Excell Fuels, a gas station and convenience store on Route 5, was charged with second-degree grand larceny and third-degree criminal tax fraud. Nagi, who has paid $20,000 in restitution so far, was sentenced by Erie County Court Judge Kenneth F. Case.

Investigators found that Nagi collected about $156,000 in sales tax from his customers between June 2008 and November 2009, but sent only $35,000 to the state.