Security Guards
Swoop 1, Inc.Information and Alerts
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Government Actions
Webster Business Owner Pleads Guilty To Tax Fraud For Failing To Report Hundreds Of Thousands Of Dollars In Income To The IRS
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
August 24, 2023 ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Steven Rosenbaum, 57, of Webster, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to filing a false tax return, which carries a maximum penalty of three years in prison and a fine of $250,000.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that Rosenbaum owns 50% of Swoop1, Inc., a security business that provides security personnel to various high schools, colleges, businesses, and performing arts venues in the greater Rochester area.
For the years 2016 through 2021, Rosenbaum and his Swoop1 co-owner, identified as A.L., failed to report on Swoop1’s corporate income tax returns gross receipts totaling $5,598,354. Rather than deposit hundreds of checks received from clients into their business bank account, the defendant and A.L. cashed the checks at a local check cashing business. From the money received from the checks cashed, Rosenbaum and A.L. paid fees to the check cashing business totaling $112,619, and paid hundreds of Swoop1’s employees some of or all their wages in cash. The remaining amount of the money received from the checks cashed, $2,550,787, was split by Rosenbaum and A.L. this resulted in Rosenbaum failing to report $1,390,315 in income and failing to pay $355,225 in taxes to the IRS. In addition, Rosenbaum and A.L. failed to pay payroll taxes on the $2,675,467 in cash that was paid to the employees of Swoop1, resulting in a loss to the IRS of $204,673.
Important Information
Believed to be out of business
According to information in BBB files, it appears that this business is no longer in business.
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