Michael Shvo, the luxury broker turned developer, has settled his ongoing art sales criminal tax case for roughly $3.5 million, including penalties, The Post has learned.
“We are pleased that this tax matter, arising from Mr. Shvo’s work in the art world, has been resolved,” his attorney Benjamin Brafman told The Post from Manhattan Supreme Court Thursday where Shvo made a brief appearance.
“The settlement requires Michael to pay the sales and use taxes on certain works of art, along with interest and some penalties, and the case will be completely resolved.”
Shvo was indicted and pleaded not guilty in September 2016 to charges that included felony tax fraud, falsifying records and corporate tax evasion.
He was accused by Manhattan District Attorney Cyrus Vance of buying art and other luxury items, including a Ferrari, and using them in New York while falsifying records and claiming they had been sent out of state to avoid about $1.275 million in sales, use and corporate taxes.
Sources close to Shvo said he chose to settle to avoid a longer and costlier fight. The ongoing matter was also distracting from his current projects that include the AMAN at 730 Fifth Ave., 125 Greenwich Ave. and 565 Broome St.
Another real estate mogul and art collector, Aby Rosen, previously settled a different case for about $7.5 million.
