$4.5M Settlement Reached With Gas Stations That Underpaid Sales Tax

A $4.5 million settlement has been reached between the state, 13 Chicago-area gas stations and two gas station owners for sales tax fraud.

Attorney General Lisa Madigan’s office announced the settlement Friday.

“This settlement is another warning to business owners considering ripping off Illinois residents and the state by failing to pay their taxes,” Madigan said in a statement. “Cheating the state out of millions of taxpayer dollars will not be tolerated.”

A lawsuit filed by Madigan’s office alleged that since 2002, the gas station owners submitted false monthly sales tax returns to the Illinois Department of Revenue, the statement said. Ten of the gas stations are still in operation and are owned by George Nediyakalayil. A second defendant, Tito Kandarapallil, co-owns one of the gas stations with Nediyakalayil.

The gas stations involved in the suit were located at:

3216 W. North Ave., Stone Park

4401 N. Harlem Ave., Norridge