Posted by branda Rodolf on June 19, 19101 at 21:18:02:
In Reply to: Re: Scentura Creations purfume scam. posted by AMANDA on October 05, 19100 at 21:01:13:
Release Date: Wednesday, September 11, 1996
Orange Perfume Company Owner Arrested
Hartford A year-long investigation by the Connecticut Department of Revenue Services (DRS) resulted in the arrest on Tuesday, September 10, of Sean Deveau of Branford for filing false state sales tax returns. Deveau, age 28, is the owner of Northeast Enterprises in Orange, an independently owned and operated distribution center for Scentura Creations, Inc., of Atlanta Georgia.
Scentura's product line of fragrances is sold under the name "Observe L'essence." They are purportedly copies or renditions of name brand perfumes sold at a fraction of the cost of the originals. For example, Northeast Enterprises sells 3.3 ounces for $24.95 compared to the retail price of the name brand at $135 or more. The products are sold door to door and on street corners.
DRS began its investigation in August, 1995, after receiving a report of possible sales tax violations from a potential employee of Northeast Enterprises. The company recruits its sales force via newspaper ads, and the complaint alleged that the sales people are given possibly misleading information about their personal liability for payment of the sales taxes.
After seizing the business records of Northeast Enterprises in September, 1995, DRS auditors compared the wholesale purchases made by the company from Scentura with sales of merchandise as filed on state sales tax returns. Agents allege that Deveau underreported gross sales by well over $80,000, resulting in a significant underpayment of the sales tax due.
Commissioner Gene Gavin said, "The State of Connecticut takes a dim view of attempts to skirt the sales tax laws. Although Mr. Deveau must be considered innocent until otherwise determined by the court, our careful examination of his business records gave due cause for DRS to bring these charges and the court to uphold them with an arrest warrant."
The alleged offenses are class D felonies, and conviction can bring imprisonment for up to 25 years and/or fines of up to $25,000. Deveau was released on a $5,000 non-surety bond and is scheduled to appear in Hartford Superior Court on September 24.