The Beachwood car trader who admitted using a children's cancer charity as a front to skip more than $500,000 in state sales taxes is ordered to spend seven years in prison.

Townsquare Digital
Townsquare Digital
loading...

Carl F. Monto, 55, was sentenced Friday in Monmouth County, according to information from the office of acting New Jersey Attorney General John J. Hoffman. He was also ordered to relinquish $537,784 in assets seized by investigators when he and his wife were arrested in August 2014.

Prosecutors agreed not to oppose Denise Monto's application for pre-trial intervention, into which she was admitted May 11, authorities said.

"Tax evasion is always a serious crime, but Monto's conduct was especially egregious because he evaded taxes by masquerading as someone helping children with cancer," Hoffman said in a prepared statement. "He built his profits on that contemptible lie and on the backs of honest taxpayers."

The probe dates back at least three years and involves two separate scams. Monto circumvented $264,806 in state sales taxes on 56 luxury vehicles by wielding a charitable-exemption certificate at dealerships. The Tri County Charity Center, Inc., ostensibly supported pediatric cancer patients.

The husband and wife paid the organization's president $100 per car for use of its identity, shipping cars out of the country and converting payments by wire into cashier's checks.

In September 2012, the New Jersey Division of Consumer Affairs (DCA) settled with the Montos and the group president for $65,000, including $18,000 for the NYU Langone Medical Center. The Montos agreed to terminate their unlicensed business, I Buy Cars For You, LLC.

On the heels of the settlement, they formed I Buy Consulting, LLC, and continued gaining tax exemptions buy claiming to buy cars for actual dealerships and leasing firms, and presenting false exemption certificates. Monto admitted buying 64 more vehicles, saving more than $250,000 in sales taxes.

The New Jersey Division of Criminal Justice maintains an online portal to report suspected corruption, financial crimes and other illegal activities. Their toll-free tip line is 1-866-TIPS-4CJ.

More From 92.7 WOBM