Minneapolis Man Sentenced To Nine Years In Prison For Tax Fraud Conspiracy

United States Attorney Gregory G. Brooker today announced the sentencing of HASSAN OSMAN, 52, to 108 months in prison for conspiracy, tax fraud and failing to appear on the day of trial. OSMAN was found guilty on September 21, 2017, following a four-day trial, 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. OSMAN was sentenced earlier today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minn.

“Mr. Osman and his co-conspirators viewed the IRS not as a tax collection agency, but a way to generate illicit revenue. They filed 100 fraudulent tax returns claiming nearly $1 million in fraudulent tax refunds,” said Assistant U.S. Attorney Joe Thompson. “Today’s sentence underscores the seriousness of Mr. Osman’s crimes and his complete lack of remorse for his actions.”

“As we are in the midst of tax filing season, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced by the 108 month sentencing today of Hassan Osman,” said Hubbard Burgess, Acting Special Agent in Charge of the St. Paul Field Office. “Today's sentencing of Mr. Osman again emphasizes that IRS Criminal Investigation and the U.S. Attorney’s Office will continue their aggressive pursuit of those who would attempt to defraud America's tax system.”

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 was 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

Sentenced:

• 108 months in prison
• Three years of supervised release
• $394,120.14 in restitution

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