Webster man pleads guilty to filing false tax returns for his security business
WEBSTER, N.Y. — A Webster man pleaded guilty to filing false tax returns. U.S. attorneys say he failed to report more than $5.5 million in income for his business.
Steven Rosenbaum, 57, faces three years in prison and a $250,000 fine. He owns half of Swoop1 Inc., a security business that provides security personnel to high schools, colleges, businesses, and performing arts venues across the Rochester area.
Attorneys say that Rosenbaum and the co-owner of Swoop1 failed to report corporate income tax returns between 2016 and 2021. Rather than depositing checks from clients into a business bank account, the co-owner cashed them at a local check cashing business. Rosenbaum used those hidden funds to pay his employees’ wages.
Attorneys say Rosenbaum and his business partner took more than $2.5 million from the checks for themselves. As a result, Rosenbaum failed to report nearly $1.4 million in income and failed to pay $355,000 in taxes to the IRS. Rosenbaum will be sentenced on Dec. 20.