While working with the outside tax preparation and accounting agency, Lizette deliberately hid the money flowing through the check cashing facility. Lizette sent bank statements for the corporate accounts, check stubs, credit card statements, payroll records and other business records but withheld the revenue received through the checks cashed at the check cashing facility, thus underreporting taxable income to the tax preparation and accounting agency. During conversations with the undercover agent, Lizette showed records to the undercover agent displaying total sales of $4.3 million and $3.9 million for the fiscal years 2017 and 2018. Lizette also talked about pulling out invoices for additional customers from business records so business records would match their bank records. As detailed in their plea agreements, the Kalenders knowingly caused a portion of the employees’ wages to be paid in cash and falsely reported the wages of Butch’s employees on Forms 941 filed with IRS. In a conversation with the undercov-
er agent, Ercin said he paid all his employees’ extra compensation in cash to avoid tax obligations, except for one secretary who was not paid under the table. This system of paying employees in cash deprived the State of Maryland of tax revenue and subverted the taxation systems of the IRS and Maryland. In 2019, after the Kalenders became aware of the IRS’s investigation, Butch’s reported gross receipts of more than $4.5 million, an increase of more than $2.2 million over 2018. Ercin Kalender and Lizette Kalender face a maximum sentence of five years in prison followed by three years of supervised release for conspiracy. U.S. District Judge Paula Xinis has scheduled Ercin and Lizette’s sentencing hearings for May 26. Barron commended the IRSCI for their work in the investigation. Barron thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the case. Source: U.S. Attorney’s Office District of Maryland
VIVE Collision Acquires Crown Collision Centers in Rhode Island Crown Collision, an auto body repair company with three locations in Rhode Island, was sold to VIVE Collision, a leading collision repair multi-site operator and a portfolio company of New York-based Garnett Station Partners. In business since 1977, Crown Collision has built a reputation for quality repair services, convenience and quick turnarounds. It is a trusted direct repair partner for many national insurers. PKF Investment Banking (PKFIB), the investment banking affiliate of PKF O’Connor Davies, LLP, announced the sale of Crown Collision Centers, its client. The sale continues PKFIB’s proven track record of high-touch service that manages complexity while delivering optimal outcomes for businesses and owners. “The PKFIB team achieved excellent value for Crown by running a disciplined process and reaching many qualified buyers,” said Ed Breault, president and owner of Crown Collision. “They
provided us with the expertise and proper preparation we needed to attract the right buyer and get the deal closed in a timely fashion.” “Crown’s leading reputation in the auto body repair space was the backbone of this deal,” said Robert Murphy, senior managing director at PKF Investment Banking. “We’re proud of the role we played in guiding them through a complex transaction, and we look forward to seeing their next chapter unfold as part of the VIVE team.” VIVE Collision is a multi-site collision repair operator providing collision repair services to customers across New York, Maine, Rhode Island and Massacchusetts. VIVE Collision was formed with a vision to carve a new path forward for the industry built on three fundamental values its founders believe the collision repair industry has neglected for too long; they call them the 3 Ps: people, process and passion. Source: PFK Investment Banking
autobodynews.com / MARCH 2022 AUTOBODY NEWS 19
