Nevada Liquor Store Owner Sentenced To Prison For Conspiring To Defraud The United States And Tax Evasion
Skimmed Cash and Evaded Reporting Nearly $4 Million in Sales
Jeffrey Nowak, a Las Vegas, Nevada liquor store owner was sentenced to serve 41 months in prison for conspiring to defraud the United States and tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden for the District of Nevada.
According to the evidence introduced at trial and documents filed with the court, Nowak, 67, and Ramzi Suliman jointly owned and operated liquor stores in Las Vegas. At their first liquor store, Super Liquor Store South Strip, Nowak and Suliman skimmed cash receipts and maintained a double set of books in order to underreport income to the Internal Revenue Service (IRS). One set of books accurately reflected the store’s sales, while a second set of books fraudulently omitted nearly $4 million in cash receipts that had been actually received by the business. Nowak and Suliman provided the phony set of books to their accountant, causing him to create corporate tax returns that did not fully report the liquor store’s gross receipts and taxable income. Nowak and Suliman also caused their true personal income to be concealed on their individual income tax returns.
“Everyone is legally required to accurately report and pay taxes on their income – cash sales are not an opportunity to skirt this obligation,” said Acting Deputy Assistant Attorney General Goldberg. “Nowak’s prison sentence makes clear that taxpayers cannot hide behind a double set of books.”
“The defendant intentionally concealed the store’s income by conspiring to skim cash and keeping two sets of account books,” said U.S. Attorney Bogden. “As a result, he cheated the U.S. Treasury and taxpayers. The U.S. Attorney’s Office is committed to working together with the IRS to pursue and prosecute perpetrators who choose to violate tax laws for their own benefit. Financial fraud is a top priority.”
In addition to the term of prison imposed, Nowak was ordered to serve three years of supervised release and pay restitution to the IRS. Nowak was convicted in August 2016, of conspiring to defraud the United States, assisting in the filing of false corporate tax returns and tax evasion. Suliman pleaded guilty in July 2014 to conspiring with Nowak to defraud the United States and was sentenced on Jan. 18 to serve 12 months in prison, three years of supervised release and to pay $428,003 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Bogden commended special agents of IRS Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Kathryn C. Newman and Trial Attorney Eric C. Schmale of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.