convenience store owner sentenced for tax fraud scheme
RICHMOND, Va. - Mohammad Asif Ali, age 47, of Midlothian, Virginia, was sentenced to 12 months in prison today for failing to report $400,829 of income and $107, 489 of tax on his personal tax returns from 2003 to 2007.
Neil MacBride, United States Attorney for the Eastern District of Virginia; and Rebecca A. Sparkman, Special Agent in Charge of the Internal Revenue Service, announced today’s sentencing by United States District Henry Hudson.
Ali owned, operated, and controlled Richmond Miller Mart, a convenience store located at 6500 Jefferson Davis Highway, Richmond, Virginia. Ali established a subchapter C corporation, In & Out, Inc., in August 2001. He incorporated another subchapter C corporation, Triple Crown, Inc., with another person in November 2004. The business of both of these corporations was the operation of the same convenience store.
Ali’s underreporting scheme involved the skimming of corporate receipts in three ways. First, he deposited substantial sums of currency receipts into his personal bank account rather than the corporate bank account. Second, he wrote checks from the corporate checking account for personal expenses, such as rent, car payments and gifts to family members in Pakistan. Third, he diverted checks payable to the corporation to himself by depositing them into his personal account. He then concealed each of these diversions from the person preparing his personal income tax returns.
Ali pled guilty to the charge of filing a false tax return for 2007 on which he fraudulently understated his adjusted gross income by $183,056 and his tax due and owing by $56,390. He admitted, however, that he had also perpetrated the same scheme from 2003 to 2007. The total additional income for the five year period was $400,829, which resulted in additional unreported income tax liabilities of $107, 489.
The case was investigated by the Criminal Investigation Division of the Internal Revenue Service. Assistant United States Attorney David T. Maguire is prosecuting the case for the United States.A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.