Houston Business Owner Who Evaded Taxes on Million in Income Sentenced to Federal Prison
|Sept. 26, 2011|
HOUSTON – The owner of Houston area automobile and towing businesses has been sentenced on tax evasion charges to 24 months in federal prison, United States Attorney José Angel Moreno announced today along with Internal Revenue Service - Criminal Investigations (IRS-CI) Special Agent in Charge Rodney E. Clarke.
Faraj Salim Said, aka Sam Said, of Houston, was sentenced today before U.S. District Court Judge Kenneth M. Hoyt for evading taxes by not filing tax returns for tax years 2006, 2007, 2008 or 2009 while having taxable income of approximately $1,300,000.
In the signed plea agreement filed of record in this case, Said admitted he placed three of his businesses - Bichr Collision Inc., National Auto Collision Inc. and Budget Collision Inc. - in nominee names, including his brother’s name, and making false statements about his income in a deposition. During one deposition, Said stated he was a “manager” for one of the businesses that he actually owned and that he received “zero” compensation for his work. In his plea agreement filed of record in this case, Said has also admitted making false statements regarding his income. Said evaded approximately $316,000 in income taxes on approximately $1,300,000 he failed to report as income between 2006 and 2009.
Statutorily, a conviction of tax evasion carries a maximum penalty of five years imprisonment and a $250,000 fine. Said has been permitted to remain on bond pending his reporting to the Bureau of Prisons.
This matter is being prosecuted by Assistant U.S. Attorney Glenn Cook and was investigated by IRS-CI.