|
|
|
||
|
|
|
|
April 8, 2002 The United States Attorney's Office for the Northern District of California announced that Sukhdeep Bawa, age 37, and his wife, Jasna Bawa, age 31, both of Napa, California, were indicted on April 2, 2002 by a federal grand jury for attempting to defraud the Internal Revenue Service by paying employees of their business, Deli Delicious, in cash. Altogether, Sukhdeep Bawa was indicted on 27 counts and Jasna Bawa was indicted on 17 counts. Both Sukhdeep Bawa and Jasna Bawa were indicted on one count of conspiracy to defraud the United States and to impede, impair, obstruct and defeat the Internal Revenue Service in the assessment and collection of corporate employment taxes of Jasna Corporation in violation of 18 U.S.C. § 371. Sukhdeep Bawa was indicted on 16 counts of willfully making and subscribing false Employer's Quarterly Federal Tax Returns on behalf of Jasna Corporation for the calendar quarters ending March 31, 1995 through December 31, 1998, in violation of 26 U.S.C. § 7206(1). Jasna Bawa was indicted on 16 counts of willfully aiding and assisting in the preparation of false Employer's Quarterly Federal Tax Returns on behalf of Jasna Corporation for the calendar quarters ending March 31, 1995 through December 31, 1998, in violation of 26 U.S.C. § 7206(2). In addition, Sukhdeep Bawa was indicted on one count of willfully making and subscribing a false U.S. Corporation Income Tax Return for Jasna Corporation for the fiscal year ending October 31, 1996, and one count of willfully aiding and assisting in the preparation of a false U.S. Corporation Income Tax Return for Jasna Corporation for the fiscal year ending October 31, 1997. Sukhdeep Bawa also was indicted on three counts of income tax evasion and three counts of willfully making and subscribing false returns with respect to his U.S. Individual Income Tax Returns for the years 1995, 1996 and 1997. According to the indictment, Mr. and Ms. Bawa are alleged to be officers of and part owners of Jasna Corporation, a California corporation doing business as Deli Delicious, which was in the wholesale business of making and distributing sandwiches. Jasna Corporation had two classes of employees: sandwich makers and drivers. Both Sukhdeep Bawa and Jasna Bawa paid some corporate employees, in whole or in part, by cash instead of by corporate check. While wages paid by corporate check were input by Sukhdeep Bawa and Jasna Bawa into the computer program for corporate payroll, neither Sukhdeep Bawa nor Jasna Bawa input into the computer program for corporate payroll the wages paid in cash to Jasna Corporation employees. Jasna Bawa generated computerized payroll records that omitted wages paid in cash which she then provided to Sukhdeep Bawa for the preparation of the Employer's Quarterly Federal Tax Returns, Forms 941 for Jasna Corporation. Sukhdeep Bawa then prepared and signed the Employer's Quarterly Federal Tax Returns, Forms 941, for Jasna Corporation for the calendar quarters ending March 31, 1995, through December 31, 1998, based on the computer generated payroll records, and filed the returns with the Internal Revenue Service. Mr. and Ms. Bawa are alleged to have known that the employment tax returns were false and fraudulent because they omitted wages paid in cash to Jasna Corporation employees. The maximum statutory penalty for the conspiracy count in violation of 18 U.S.C. § 371 is five years and a fine of $250,000. Each count of making and subscribing a false return in violation of 26 U.S.C. § 7206(1) is subject to a maximum statutory penalty of three years and $250,000. The maximum statutory penalty for each count of willfully aiding and assisting in the preparation of a false return in violation of 26 U.S.C. § 7206(2) is three years and $250,000. And each count of income tax evasion in violation of 26 U.S.C. § 7201 is subject to a maximum statutory penalty of five years and $250,000. However, any sentence following conviction would be dictated by the Federal Sentencing Guidelines, which take into account a number of factors, and would be imposed in the discretion of the Court. An indictment simply contains allegations against an individual and, as with all defendants, Mr. and Ms. Bawa must be presumed innocent unless and until convicted. The defendants' first appearance in federal court will be April 18, 2002 at 9:30 a.m. before Magistrate Judge James L. Larson. The prosecution is the result of a three year investigation by special agents of the Internal Revenue Service. David L. Denier is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kathy Tat. A copy of this press release and related court documents may be found on the U.S. Attorney's Office's website at www.usdoj.gov/usao/can. All press inquiries to the U.S. Attorney's Office should be directed to Assistant U.S. Attorney Matthew J. Jacobs at (415)436-7181.
|
||
