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Tuesday, February 1, 2011

Former Buddy's Carpet Bosses Involved in Tax Fraud

Posted By on Tue, Feb 1, 2011 at 2:36 PM

Can still hear that voice after all these years.
  • Can still hear that voice after all these years.

Generations of radio listeners and TV peepers have suffered through the commercials for Buddy’s Carpet & Flooring, the rug chain with kitschy spots featuring Buddy himself, aka the late Burton B. Kallick.

Distinct for his ceiling-scraping whine, Buddy would berate his way through ads like an excited adolescent pleading a stony date for a squeeze — A SQUEEZE! — all in that signature out-of-tune-violin voice. The results: Truly. Terrible. Commercials.

Well, it turns out that while he was inflicting major metropolitan markets with audio pain, Kallick was keeping his money hidden from Uncle Sam. In the 90s, The company’s namesake and others bought bunk insurance policies in the Virgin Islands in order to keep money off the books. In total they were able to bilk the government out of $700,000 in tax dollars.

Even though Kallick died in 2007, his cohorts were left holding the bag — said bag in this case containing federal indictments for tax fraud. The final conspirator — former company co-owner Leif Rozin — was sentenced in Cincinnati last Friday, according to the Cincinnati Enquirer. Rozin was slapped with a one-year prison sentence, 2,000 hours of community service, and forced to pay $380,000 in back taxes.

Three others are shouldering sentences thanks to the scam: company attorney Alan Koehler got 18 months; advisor Milton Liss took home a year sentence; and insurance man Bruce Cohen won a three-year stay in custody.

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