News and Press Releases

Fargo Scrap Metal Dealer Pleads Guilty to Tax Charge

FOR IMMEDIATE RELEASE
March 25, 2013

FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 25, 2013, Hamzo Omerovic of Fargo, N.D., pleaded guilty before U S. Magistrate Judge Karen K. Klein to a federal tax charge.

Omerovic, 27, pleaded guilty to a one-count information charging him with willfully failing to file an income tax return for calendar year 2006. Willful failure to file a tax return in violation of Title 26, United States Code, Section 7203, is a Class A Misdemeanor punishable by up to one-year in prison and a fine of up to $100,000.

Omerovic, a self-employed scrap metal dealer, in 2006 purchased and obtained scrap metal in Fargo and the surrounding area, which he then sold to a number of scrap metal dealers, primarily in North Dakota and Minnesota. The investigation conducted by the Internal Revenue Service - Criminal Investigation Division, showed that Omerovic’s gross receipts for the year totaled in excess of $152,000, with an estimated tax loss, for sentencing purposes, of more than $30,000.

Omerovic admitted, in the plea agreement and in court, that he had willfully failed to file a 2006 income tax return with the IRS, even though he had earned sufficient gross income and knew he was required to file a return no later than April 17, 2007.

The actual tax loss to the IRS will be determined after sentencing through a civil tax examination by the IRS.

U.S. Attorney Timothy Q. Purdon stated, “Self-employed persons, such as Mr. Omerovic, have an obligation to accurately report their income, deductions and credits to the IRS and maintain appropriate records of those items. Failure to file tax returns is a serious problem which can result in imprisonment.”

"With the tax filing season upon us, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today," said Kelly R. Jackson, Special Agent in Charge of the St. Paul Field Office. "Today's guilty plea of Mr. Omerovic again emphasizes that the Internal Revenue Service- Criminal Investigation Division and U.S. Attorney’s Office will continue their aggressive pursuit of those who would attempt to defraud America's tax system."

Omerovic, who was released on his personal recognizance, will be sentenced at a later date.

The case was investigated by the Internal Revenue Service - Criminal Investigation Division.

Assistant U.S. Attorney Scott S. Schneider is prosecuting the case.

 

 

 

 

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