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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Virginia

FOR IMMEDIATE RELEASE
Friday, December 12, 2014

Alexandria Man Sentenced For Failing To Pay Employment Taxes

One year in prison and ordered to pay $238,345 in restitution

ALEXANDRIA, Va. – Nureni Abayomi Baruwa, 57, of Alexandria, was sentenced today to 12 months and one day in prison, followed by three years of supervised release for employment tax fraud. Baruwa was also ordered to pay $238,345.52 in restitution.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Larry J. Wszalek, Acting Deputy Assistant Attorney General for the Department of Justice Tax Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.

According to the plea agreement and statement of facts, Baruwa operated a car detailing business called NAB International Group of Companies Inc.  This business was incorporated by Baruwa in 1993 in the Commonwealth of Virginia and he served as the president.  Baruwa was in charge of withholding employment taxes from his employees’ wages, paying over the withheld amount to the IRS and reporting these amounts to the IRS by filing quarterly employment tax returns.

According to court documents, in all but three quarters, beginning with the first quarter of 2003 through the last quarter of 2010, Baruwa failed to timely collect, account for and pay the IRS the taxes withheld from his employees’ paychecks, as well as the employer’s portion of the employment taxes.  Furthermore, in all but five quarters during the same period, Baruwa failed to file NAB’s quarterly employment tax returns with the IRS in a timely manner.  Additionally, since at least 2006, Baruwa has failed to file an individual income tax return in a timely manner, despite the fact that he was legally required to do so annually.  According to court documents, the tax loss is between $200,000 and $400,000.

This case was investigated by IRS-Criminal Investigation. Assistant Chief Caryn Finley of the Department of Justice Tax Division, and Assistant U.S. Attorney Uzo Asonye prosecuted the case on behalf of the United States.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:12-cr-370.

 

Updated August 11, 2016