BIRMINGHAM – A federal judge today sentenced the owner or operator of several Birmingham-area businesses, including Mike’s Crossroads strip club, to 21 months in prison for a federal tax violation of nearly $450,000, announced U.S. Attorney Joyce White Vance and IRS Criminal Investigation Division Special Agent in Charge Donald B. Yaden.

U.S. District Judge Abdul K. Kallon sentenced AHMAD “MIKE” RAHIMINEJAD, 56, of Helena, for filing a false tax return in 2007 which stated his gross income for 2006 was $629,700. His actual gross income for 2006 was $1,144,532. Rahiminejad pleaded guilty to the charge in July and agreed to pay $446,693 in restitution to the U.S. Treasury for four tax years, 2006-2009. The court ordered restitution in that amount, plus interest, as part of Rahiminejad’s sentence. He must serve one year of supervised release after completing his prison sentence.

“We all pay taxes as part of the price for having all the advantages this great country offers,” Vance said. “If you don’t pay your taxes, we are going to come after you,” she said.

“No matter what the source of income, all income is taxable,” Yaden said. “The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS’s enforcement strategy. Today’s sentence is an example of how seriously the courts take federal tax crimes.”

Rahiminejad owned or operated 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.

The IRS, Criminal Investigation Division, investigated the case. Assistant U.S. Attorney Davis Barlow prosecuted the case.

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