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D.A.: Business Hid $1.4 Million in Tax Receipts

State and county officials said a St. James businessman, running Medford-based Rooms Unlimited, failed to report $1.4 million in receipts over nearly a five-year span.

A St. James businessman running a Medford-based furniture store has been charged with felony grand larceny after state officials say he failed to file $1.4 million in sales tax receipts over nearly a five-year span.

According to the State Department of Taxation and Finance, Richard Kogel - owner of K.A.R. Ltd. - receipts from June 2007 to May 2011 went unreported to tax officials. K.A.R. Ltd. performs business as Rooms Unlimited.

Kogel pleaded not guilty to the class B felony charge, and was released on his own recognizance. According to an employee at the Medford store, Kogel was advised not to comment. He is due back in court on Oct. 16.

Officials said the void in sales receipts was uncovered following a joint investigation between the DTF and Suffolk County District Attorney's Office.

"When a business evades its sales tax obligations, honorable merchants operate at a competitive disadvantage and taxpayers are victimized," said Suffolk County D.A. Thomas Spota.

Spota said that since 2005, joint investigations between the departments have resulted in the return of about $8 million to the state. 

Debbi Hager Spiegel September 10, 2012 at 10:52 PM
I had the worst experience with Rooms Unlimited. Nothing surprises me about them!
Cathy Brigandi September 10, 2012 at 11:15 PM
I waited over a year for my return of 162.66. kept telling me next week it will be in. One year later and no chair. They made me feel like I was wrong for calling all the time.
Russ September 11, 2012 at 03:53 AM
Guess he didn't learn a thing from "Crazy Eddies". I see big time jail time comin. Dummy

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