Manhattan developer accused of US$1 million tax evasion

New York

FOR the last six years or so, real estate developer Michael Shvo allegedly went shopping for luxury goods that would make an oligarch swoon: fine art, jewellery, furniture, even a Ferrari.

On Thursday, Manhattan District Attorney Cyrus Vance cut the spree short, accusing Mr Shvo of evading more than US$1 million in state and local taxes while making his high-end purchases.

Mr Shvo, 43, pleaded not guilty in Manhattan state court to charges that included felony tax fraud and falsifying business records. He was released on US$500,000 bail. Two of his companies were also charged in a scheme to avoid paying state and local taxes on art purchases from 2010 to 2016, according to Mr Vance.

The case is just the latest by state authorities to scrutinise art dealers and collectors for crimes that range from fraud to tax evasion. In May, Attorney General Eric Schneiderman announced two tax settlements - one with Aby Rosen, a New York real estate developer with a storied half-billion-dollar art collection, and another with a sales executive at the prominent Gagosian Gallery I…