Fred Leighton admits tax fraud

Fred Leighton Ltd., pleaded guilty for failing to collect taxes on jewelry purchases, the New York Times reports. The retailer must pay about $1 million in fines and back taxes, the Manhattan district attorney’s office reportedly said in a statement.

Prosecutors said the store, on Madison Avenue near 66th Street, did not collect tax on millions of dollars’ worth of necklaces, cuff links, bracelets, and rings. Prosecutors said the store created false shipping documents to make it appear as if the purchases were being shipped to customers out of state, thereby sidestepping sales taxes.