Seeger Weiss represented a former employee of Mohan’s Custom Tailors turned whistleblower in this groundbreaking case: the first settlement obtained under the 2010 tax whistleblower amendment to New York’s False Claims Act.
In 2013, the multimillion-dollar tax fraud case against celebrity tailor Mohanbhai Ramchandani, popularly known as “Mohan,” was unsealed. Brought by the Seeger Weiss-represented relator who blew the whistle on millions of dollars of unreported income and sales taxes by Mohan and his New York City-based tailoring business, which widely advertises in newspapers and other media, the suit settled for $5.5 million in back taxes and penalties to the State of New York. Under the relator award provisions of New York’s False Claims Act, the relator will receive a $1.1 million whistleblower reward. Cofounding partner Stephen A. Weiss represented the relator in filing the lawsuit and bringing his information to the attention of the authorities.
“Mohan perpetrated a sophisticated tax fraud for over ten years that cost New York’s taxpayers and the state treasury millions of dollars,” said Mr. Weiss. “Today’s settlement demonstrates how necessary and effective whistleblower laws are in uncovering small business fraud that may be known and visible only to company insiders,” added Mr. Weiss. “We should all be grateful to whistleblowers like my client, who risk their reputations and well being to do the right thing and bring wrongdoers like Mohan to justice.”
Mr. Weiss and Seeger Weiss associate Asa R. Danes were joined in their representation of the relator by Benjamin Brafman of Brafman & Associates, P.C. and Professor Thane Rosenbaum of Fordham Law School. Mr. Weiss also praised Randall M. Fox, Bureau Chief of the New York Attorney General’s Taxpayer Protection Bureau and Assistant Attorney General Lisa M. White, who prosecuted the case for the State of New York. “Randy and Lisa were relentless and extraordinarily effective in their investigation and prosecution of this case,” said Weiss. “They are a tremendous credit to the people of New York.”