Birmingham Business Owner Pleads Guilty to $450,000 Federal Tax Violation
BIRMINGHAM – The owner of several Birmingham-area businesses pleaded guilty today in federal court to filing a false tax return and admitting owing the Internal Revenue Service nearly $450,000, announced U.S. Attorney Joyce White Vance and IRS Criminal Investigation Division Special Agent in Charge Donald B. Yaden.
AHMAD RAHIMINEJAD, 56, of Helena, entered his guilty plea before U.S. District Judge Abdul K. Kallon to filing a false tax return in 2007 which stated his gross income for 2006 was $629,700, when his actual gross income for that year was $1,144,532. The judge scheduled sentencing for late October.
“IRS special agents who investigated this case are to be commended for recovering close to a half million dollars for the U.S. Treasury,” Vance said. “Along with committing a crime, everyone who evades paying their due share of federal taxes is taking advantage of honest taxpayers.”
“The U.S. tax system is based on voluntary compliance with our tax laws,” Yaden said. “While most taxpayers are honest and law-abiding, there are a few rogue individuals who believe they do not have to pay their fair share. Investigating those who do not voluntarily comply with the law is a vital element in maintaining public confidence in the tax system. I join U.S. Attorney Joyce Vance in commending the IRS agents involved in this case for their efforts in investigating and bringing this case to justice,” he said. “Today’s plea was a victory for the American taxpayers.”
Rahiminejad owned several businesses in the Birmingham Metro Area, including Mike’s Citgo 1, the Gold Club and the strip club, Mike’s Crossroads. According to his plea agreement with the government, Rahiminejad disclosed those businesses on his federal income tax returns for tax years 2006 through 2009, but “greatly understated” his gross receipts and business income for those four years. Because of the under-reported income, Rahiminejad owes the IRS $446,693 for the tax years 2006 through 2009.
As part of his plea agreement, Rahiminejad agrees to pay the $446,693 in restitution to the U.S. Treasury.
Rahiminejad faces a maximum penalty of three years in prison and a $250,000 fine.
The IRS, Criminal Investigation Division, investigated the case. Assistant U.S. Attorney Davis Barlow is prosecuting the case.
If you believe your organization has expertise or resources that could improve outcomes for ex-offenders re-entering society, please e-mail our Community Outreach Coordinator at Jeremy.Sherer@usdoj.gov
or call 205-244-2019.
The Office of U.S. Attorney
Joyce White Vance
Natural Disaster Fraud Hotline
Members of the public can report fraud, waste, abuse or allegations of mismanagement involving disaster relief operations through the Hotline, toll free, at (866) 720-5721 or the Disaster Fraud e-mail at email@example.com. Please see the News Release Justice Department Officials Raise Awareness of Disaster Fraud Hotline