FOR IMMEDIATE RELEASE - Wednesday, May 7, 2003 
(Wilmington, DE) – David Sullivan, Acting Director of Revenue announced today that a Newark store owner waived his right to indictment by a grand jury and entered a guilty plea in NCC Superior Court to underreporting his taxable income for three consecutive years.
Mayank R. Gandhi, age 48, entered a guilty plea before NCC Judge Richard S. Gebelein to two misdemeanor counts of willfully attempting to evade income tax and offering a false instrument for the tax year 2001.
Gandhi was sentenced on each count to one-year probation and ordered to pay a $1,000 fine and the cost of prosecution. He was also ordered to perform 8 hours of community service. Because Gandhi has already repaid more than $30,000 to the Division of Revenue in back tax, interest, and penalties for the years 1999 through 2001, he was not mandated by the court to pay restitution.
An investigation conducted by the Delaware Division of Revenue’s Criminal Investigation Unit revealed that Gandhi, owner and operator of a Newark newsstand, underreported the receipts of his business by hundreds of thousands of dollars. Gandhi evaded taxes on this money by failing to deposit all business receipts into his business account. Those receipts were instead deposited into an account never revealed to his accountant.
For calendar years 1999 through 2001, Gandhi falsely understated by more than $300,000 the gross business receipts from Newark News & Tobacco. As a result, Gandhi substantially underreported his taxable income in each of these three years.
The tax loss to the State of Delaware on that unreported income was more than $20,000.
This case was prosecuted by the Delaware Attorney General’s office.