Denver Business Owner Pleads Guilty to Tax Evasion, Admits to Making False Statements to the IRS
Abdelhamid M. Horany, 58, of Denver, pleaded guilty today before U.S. District Judge R. Brooke Jackson in federal court in Denver to one count of tax evasion related to his 2007 individual income taxes, announced the Justice Department and the Internal Revenue Service (IRS).
As part of his plea, Horany admitted that he owned and operated Euphrates Pizza, doing business as Famous Pizza, in Denver from at least 2003 through 2007. He further admitted to willfully underreporting the income he received from his business by approximately $175,000 on his 2007 income tax return, which resulted in Horany underreporting his tax due and owing by over $60,000 for 2007. In total, for tax years 2005 through 2007, Horany admitted that he underreported his tax due and owing by more than $145,000. Horany further admitted to making false statements to an IRS Revenue Agent regarding his tax liabilities.
According to court documents, Horany was indicted in July 2012 after he had fled the United States to his native country of Jordan, and was arrested in October 2013 when he returned on a flight and was ordered detained as a flight risk.
Sentencing was set for May 8, 2014, when Horany faces a statutory maximum sentence of five years in prison, a $250,000 fine and three years of supervised release. In addition, according to the plea agreement, he has agreed to pay restitution to the IRS in the amount of at least $195,280.
The case was investigated by special agents of the IRS - Criminal Investigation, and Trial Attorneys Hayden Brockett and Timothy Stockwell of the Tax Division are prosecuting the case.