Former Payroll Service Provider Pleads Guilty To Tax Evasion
MINNEAPOLIS—Today in federal court, Mohamed Abdi, a former payroll service provider, pleaded guilty to one count of tax evasion. Abdi, who was indicted on April 9, 2012, entered his plea before United States District Judge John R. Tunheim.
From January 1, 2005 through June 2007, Abdi was the sole owner of Siham Solutions, Inc., which provided payroll services to clients in Minnesota. These services included paying federal income and employment taxes withheld from employees of Siham’s clients to the Internal Revenue Service (“IRS”) on a quarterly basis. In his plea agreement, Abdi acknowledged that from the first quarter of 2005 through the second quarter of 2007, he received between $80,000 and $200,000 of payments from clients that were supposed to be paid to the IRS. Instead, Abdi used the money received from his clients for his own purposes.
In particular, during the third quarter of 2006, Abdi received $3,817.12 from a Siham client, United Care Inc., which he agreed to pay to the IRS on United Care’s behalf on October 15, 2006. Instead, Abdi took the money and used it for other purposes.
For his offenses, Abdi faces a potential maximum penalty of five years in federal prison, as well as possible fines and an order of restitution. Judge Tunheim will determine his sentence at a future hearing, not yet scheduled.
This case is the result of an investigation by the IRS-Criminal Investigation Division. It is being prosecuted by Assistant U.S. Attorney Michael L. Cheever.
Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.