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A Batavia businessman, found guilty of failing to file three years worth of tax returns, may owe the state nothing.

Cregg Paul, the former owner of the Employee Leasing Network, was in Genesee County Court this morning for what was expected to be a restitution hearing.

Paul just recently filed the tax returns for the years 1999 through 2001. Paul maintains the business sustained a loss in those years, and he owes no back taxes.

The Attorney General’s office, which had prosecuted Paul, wants the state tax department to audit the returns. If they find the returns accurate, Paul will owe nothing.