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Webster security firm owner admits to significant tax fraud

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  • Staff Report 

Steven Rosenbaum, a 57-year-old business owner from Webster, has pleaded guilty to tax fraud charges. 

The co-owner of the security firm Swoop1, a company offering security personnel services to educational institutions and businesses, was indicted for neglecting to report a substantial sum of income to the IRS.

The U.S. District Attorney’s Office disclosed that Rosenbaum, alongside his business partner, failed to report gross receipts surpassing $5 million. 

Instead of following standard deposit procedures, the pair allegedly cashed client checks at a local business, incurring fees of over $112,000. 

This maneuver enabled them to pay numerous Swoop1 employees in cash, with the remainder being divided between the two owners. 

Consequently, Rosenbaum omitted over $1 million in income from his tax returns, evading more than $355,000 in taxes and disregarding payroll taxes owed on employee wages. 

Facing charges of filing a false tax return, which carries a potential three-year prison term and a $250,000 fine, Rosenbaum awaits sentencing on December 20, 2023.