Pallens Auto Concepts filed a police report Aug. 20 alleging that Richard Zakarian failed to pay more than $20,000 of the business’s taxes.
Business owner Isabel Pallens told police that Pallens Auto Concepts hired Benjamin Franklin Payroll Services to file the company’s federal, state and city tax returns. The taxes were filed, Pallens said, but the $20,198 taken by Zakarian from a business account to pay them never made it to the IRS.
Pallens said she contacted Benjamin Franklin Payroll Services to find out why the taxes had never been paid and was told that the company would take care of the situation. According to Pallens, the situation has not been corrected, prompting her to contact police.
She could not be reached Thursday for comment.
Benjamin Franklin Payroll Services was sued by Spitzer Management Inc. earlier this month after Spitzer alleged Zakarian stole more than $700,000 from the company.
Zakarian was indicted on a felony theft charge after Spitzer was notified by the Internal Revenue Service that only $24,456 was deposited instead of the $591,586 due.
Lorain County Prosecutor Dennis Will said several others have come forward alleging that they have had similar problems with the tax service or Zakarian.
“We’re receiving contact from people who have seen his name in the newspaper,” he said.
Will said he has recommended those people file a report with the police before any action can be taken against Zakarian.
Zakarian was arraigned Aug. 30 in the Lorain County Court of Common Pleas, where he entered a plea of not guilty. His pre-trial is set for 8:30 a.m. Monday.
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