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'Seinfeld' bagel shop owner hit with tax charges

/ Source: The Associated Press

Prosecutors say the owner of a storied New York City bagel business shortchanged the state out of a lot of dough by cheating on taxes.

Manhattan District Attorney Robert Morgenthau said Wednesday that H&H Bagels owner Helmer Toro pocketed more than $369,000 in income and other taxes withheld from employees' paychecks and set up shell companies to game the unemployment insurance tax system out of another $33,000.

Toro was released from custody after pleading not guilty to charges including grand larceny. His lawyer didn't immediately return a telephone call.

The business bills itself as the world's biggest bagel manufacturer. H&H has been featured in TV's "Seinfeld" and the 1998 movie "You've Got Mail," not to mention countless food guides and best-of lists.