albany2 120New York - Comptroller Thomas P. DiNapoli, Attorney General Eric T. Schneiderman  and Acting Tax Commissioner Nonie Manion announced today a settlement with K3 Learning, Inc. (f/k/a Metropolitan Preschools, Inc.) and its president and owner Michael C. Koffler, together with his sons, Brian and Daniel Koffler, and his special education preschool, Sunshine Development School ("SDS"), for overcharging the State of New York for services rendered by SDS and for failing to pay millions in personal and corporate income tax.  Following a coordinated investigation with the Department of Taxation and Finance and an audit and investigation by the Office of the State Comptroller, Koffler and the other parties have agreed to pay the State over $4.3 million to resolve the investigation.

"This family manipulated the system to enrich themselves at the expense of children with special needs," said State Comptroller Thomas P. DiNapoli. "Now, thanks to my partnership with Attorney General Schneiderman, they will pay back millions for their actions. My office will continue to work to protect vulnerable New Yorkers and punish those who exploit those in need and defraud the taxpayers."