Former Lancaster County auto dealer ordered to pay restitution in tax fraud case
LANCASTER — A former Lancaster County auto dealer must pay $722,364.72 in restitution and serve 10 years probation after pleading guilty to engaging in deceptive business practices and failing to pay sales tax to the state.
David E. Layton, 51, of Lititz, was part-owner of Auto Showcase of Neffsville, Inc., when the crimes occurred, according to a press release issued by Revenue Secretary Dan Hassell.
“This prosecution was the result of a successful partnership that involved the Department of Revenue working with the Pennsylvania State Police and the Lancaster County District Attorney’s Office,” Hassell said. “Failing to remit funds that are collected in trust is a serious crime. We want the public to know that we are working to ensure there is a level playing field for business owners who abide by the law and pay their taxes.”
A criminal complaint filed in support of the charges against Layton alleged he created false or misleading statements to obtain credit and property, failed to pay off loans on cars that were traded in at his business and failed to remit collected sales tax and fees to the Commonwealth.
Layton pleaded guilty to four counts of receiving deposits in a failing financial institution. In addition to the Commonwealth, the restitution imposed at sentencing is to be paid to creditors, companies and customers who did business with Auto Showcase of Neffsville, Inc.
Secretary Hassell thanked Lancaster County Assistant District Attorney Andrew T. LeFever and the Pennsylvania State Police for their work on this case. He also commended investigators in the Department of Revenue’s Bureau of Criminal Tax Investigations for their work to develop the investigation.