Even in the wake of Spa Castle’s aquatic sex problem, the death of an elderly man in one of its jacuzzis, and a child’s near drowning, it seemed that nothing could kill the Korean mega-spa. But everyone’s favorite outer-borough bargain retreat is facing charges of grand larceny. The kings and queen of Spa Castle– owners Steve Chon, his two brothers Daniel and Victor, and his daughter Stephanie– were arraigned at Queens County Supreme Court today, each on 11 felony charges.
According to an indictment released today by state Attorney General Eric T. Schneiderman’s office, the spa complex failed to pay over $1.5 million in taxes between 2010 and 2013, even though their College Point location “generated over $22 million per year in revenues” during that time. The Chons are accused of underreporting income, failing to pay over $621,000 in state sales taxes, and failing to fork over withholding taxes, corporate taxes and MTA surcharge taxes. If convicted, they face up to 5 to 15 years in prison.
“The scale of theft alleged in this case is staggering,” Nonie Manion, Acting Commissioner of Taxation and Finance, was quoted as saying. “If proven, these felony crimes show a blatant disregard for New York State law and all law-abiding New Yorkers and business owners, who shoulder the added tax burden and suffer the loss of revenue used for vital programs and services.”
Bail is set at $100,000 bond for each of the defendants.
Alfredo Mendez, who is representing Spa Castle, said that the Chon family “vehemently deny today’s allegations, which it must be noted date back more than 5 years.”
Spa Castle’s College Point location remains open today. Its midtown location, Premiere 57, closed in February. Its website says it will reopen in April with what its Facebook page describes as “a newly renovated Spa and luxurious improvements.” An employee at the College Point location said the pool party would return in two weeks.