Federal Jury Finds Minneapolis Man Guilty Of Tax Fraud

Acting United States Attorney Gregory G. Brooker today announced the conviction of HASSAN OSMAN, 52, on charges of conspiracy, tax fraud and failing to appear on the day of trial. OSMAN was charged by superseding indictment on May 3, 2016. Following a four-day trial before U.S. District Judge David S. Doty, the jury convicted OSMAN on one count of conspiracy, 13 counts of aiding and assisting in the preparation of a false tax return, and one count of unlawful flight from prosecution.

“Hassan Osman participated in a tax fraud conspiracy that involved nearly 100 fraudulent tax returns claiming more than $1 million in fraudulent tax refunds,” said Assistant U.S. Attorney Joe Thompson. “Osman’s attempt to avoid responsibility for his actions by fleeing the country was unsuccessful. Thanks to the IRS and US Marshals, Osman was arrested in Canada and extradited back to the United States to face trial. He now faces the prospect of spending additional time in prison based on his flight from prosecution.”

“Hassan Osman’s attempt to evade the law was thwarted and he was found guilty of conspiracy to aid and assist in the preparation and filing of false tax returns by a jury of his peers,” said IRS Criminal Investigation, Acting Special Agent in Charge Hubbard Burgess, St. Paul Field Office. “Other persons thinking about participating in a scheme like this should understand that the consequences may include prison, being branded a convicted felon for the rest of their lives and paying restitution to the government.”

As proven at trial, between January 2008 and April 2011, OSMAN and his co-conspirators devised and carried out a tax fraud scheme by filing false federal income tax returns claiming fraudulent refunds. OSMAN and his co-conspirators prepared fraudulent tax returns using fake W-2s created in the name of several front companies. Most of the returns were filed electronically, either from coffee shops or from a business in south Minneapolis owned by OSMAN. The resulting refunds were split among OSMAN and his co-conspirators. Often times, the fraudulent refunds were deposited onto prepaid debit cards and sent to addresses controlled by OSMAN or his co-conspirators. During the course of the conspiracy, OSMAN and his co-conspirators filed more than 90 income tax returns claiming approximately $1,012,877 in fraudulent tax refunds.

As proven at trial, OSMAN was arrested on April 17, 2015 and was later released on bond pending trial. On July 28, 2015, when OSMAN failed to appear for a court ordered pretrial conference, a warrant was issued for his arrest. On April 14, 2016, OSMAN was arrested in Toronto, Canada and later extradited back to the United States to face trial.

This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.

This case is being prosecuted by Assistant U.S. Attorneys Joseph H. Thompson and Michelle E. Jones.

Defendant Information:

HASSAN OSMAN, 52

Minneapolis, Minn.

Convicted:

• Conspiracy, 1 count
• Aiding and assisting in the preparation of a false tax return, 13 counts
• Failure to appear, 1 count

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United States Attorney’s Office, District of Minnesota: (612) 664-5600