New Jersey Owner of Auto Repair Shop Sentenced to Prison for Filing a False Corporate Tax Return

A New Jersey man was sentenced today to one year and one day in prison for filing a false corporate income tax return with the IRS. 

According to court documents and statements made in court, Gabriel Ferrari of Edison, New Jersey, owned and operated Buses and Trucks, Inc., an automotive repair business located in Linden, New Jersey. In 2011, Ferrari used business funds to pay for personal items, including gambling on horse races. Ferrari concealed this diversion of business income by not disclosing it to his return preparer, thus causing the preparation and filing of a false corporate tax return.  Furthermore, Ferrari did not pay employment taxes in the amount of $291,600 based on an unreported cash payroll.    

In addition to the term of imprisonment, U.S. District Judge Stanley R. Chesler ordered Ferrari to serve one year of supervised release and to pay approximately $87,926 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement.

IRS-Criminal Investigation investigated the case.

Trial Attorney Ann M. Cherry of the Justice Department’s Tax Division and Assistant U.S. Attorney Andrew M. Trombley of the District of New Jersey prosecuted the case.