Dealer in Ancient Coins Indicted for Tax Fraud

April 8, 2013

This past Tuesday, April 2, U.S. Attorney Paul J. Fishman announced that a federal grand jury in Newark, New Jersey returned a three-count indictment charging a former Bergen County dealer in ancient coins with tax fraud. The dealer, Gantcho Zagorski, currently residing in Chicago, is a former resident of Hackensack and was charged with aiding and assisting in the filing of false federal income tax returns for 2006-2008. The indictment is the result of an investigation by US Immigration and Customs Enforcements’s (ICE) Homeland Security Investigations (HSI), the IRS, and the FBI.

According to the indictment, Zagorski owned and operated a business that sold ancient coins to domestic and international customers. He sold his coins primarily on eBay and worked from his residence in Hackensack, assisted by his wife and daughter. He operated the business under several different names, including Diana Coins, Paganecoins, and Diana Coins LLC. According to records, he also owned Balkan Import Auto Sales, Inc. in Venice Florida, where he has also lived. The indictment alleges that for calendar years 2006-2008, Zagorski provided his tax preparer with fraudulent information, underreporting the gross receipts and sales earned by his business at $230,000-$314,000. The indictment does not address the legality of the coins or the business practices beyond tax fraud.

Each of the three tax counts carries a maximum potential penalty of three years in prison and $250,000 fine.

A date for Zagorski’s arraignment will be scheduled after the case has been assigned to a federal district judge. The government will be represented by Assistant US Attorneys Maureen Naky of the Special Prosecutions Division and Leslie Schwartz of the Economic Crimes Unit.

Sources: ICE News Releases, Chasing Aphrodite, Looting Matters