Montgomery County Tax Preparer Sentenced to Two Years in Prison for Preparing False Federal Tax Returns
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Mohamed Babar Sangarie, age 48, of Germantown and Gaithersburg, Maryland, to two years in prison followed by one year of supervised release. Sangarie was convicted at trial on March 22, 2010 of 20 counts of filing false income tax returns with the IRS. Judge Motz also ordered that Sangarie pay a $100,000 fine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Rebecca Sparkman of the Internal Revenue Service - Criminal Investigation.
“The IRS-Criminal Investigation stands ready to investigate anyone who would put a taxpayer at risk for a quick profit,” stated Rebecca Sparkman, Internal Revenue Service-Criminal Investigation Special Agent in Charge, Washington DC Field Office. “Tax practitioners and return preparers have a duty to their clients to prepare complete and accurate tax returns that comply with the law.”
According to testimony presented at the two week trial, between 2002 and 2005, Sangarie operated a tax return preparation business from his home in Montgomery County known as MBS Tax Service. For tax years 2002 through 2004, Sangarie prepared individual federal tax returns containing false information for his clients, inflating and fabricating deductions and credits in order to fraudulently increase the refunds due to his clients, or decrease their tax liability. For example, Sangarie fabricated and inflated the amount of clients’ charitable gifts, job-related expenses, medical expenses, business expenses and expenses for tuition and education fees.
Evidence presented at trial and during today’s sentencing proceeding demonstrated that between 2002 and 2004, Sangarie falsified tax deductions of more than $350,000 for more than a dozen clients. In all, during that same time, Sangarie prepared more than 6,800 tax returns, 98% of which reported no tax due or claimed tax refunds from the IRS.
United States Attorney Rod J. Rosenstein commended Assistant United States Attorneys Michael Pauze, Robert Hur and Jonathan Su, who prosecuted the case.