Owner of Bay Area Home Health Care Providers Charged with Tax Fraud and Structuring Cash Transactions
OAKLAND, Calif. – Muzaffar Hussain, of Hayward, was charged on June 25, 2013 with four counts of tax evasion, 13 counts of filing a false tax return, 18 counts of willful failure to truthfully account for and pay payroll taxes, and nine counts of structuring transactions to evade reporting requirements, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation (IRS-CI) Special Agent in Charge José M. Martinez.
According to the indictment, between July 2004 and December 2008, Hussain owned and operated Cross Roads Health Care and Hospice, Inc. (Cross Roads). As the corporate officer, he was responsible for collecting, accounting for and paying over Cross Roads’ employment withholdings taxes to the IRS. For a period of 18 quarters, Hussain failed to truthfully account for and pay over the required withholdings taxes to the IRS, in the amount of $534,728.15.
It is further alleged that Hussain filed tax returns with understated income for tax years 2005 and 2006, and he failed to file personal income returns altogether for 2007 and 2008. During all four years, according to the indictment, Hussain used corporate funds to pay personal expenses including payments for rent, marriage dissolution obligations, luxury cars, motor-home, and motorcycles in an attempt to conceal from the IRS his true and correct income.
The Indictment further alleges that Hussain signed and filed corporate income tax returns on behalf of three separate home health care providers that omitted gross receipts earned by the businesses. It is alleged that from 2004 through 2008, Hussain omitted gross receipts from the Corporate Income Tax Returns of Cross Roads in the amounts of $506,925, $795,384, $901,794, $372,930 and $312,992. From 2004 through 2006, Hussain allegedly omitted gross receipts from the Corporate Income Tax Returns he signed on behalf of Horizon Health Care, Inc. in the amounts of $264,928, $603,702 and $157,285. The indictment also alleges that from 2004 through 2008, Hussain omitted gross receipts from the Corporate Income Tax Returns of Sunshine Home Health Care, Inc. in the amounts of $363,917, $648,197, $140,390, $736,542 and $277,968.
The Indictment further alleges that between March 6, 2010, and May 24, 2010, Hussain knowingly structured money transactions for the purpose of evading reporting requirements.
The maximum statutory penalty for each count of tax evasion, in violation of Title 26, U.S.C § 7201 is five years in prison and a fine of $250,000. The maximum penalty for willful failure to collect or pay over taxes in violation of Title 26, U.S.C § 7202 is five years in prison and a fine of $250,000. The maximum statutory penalty for each count of filing a false tax return, in violation of Title 26, U.S.C § 7206(1) is three years in prison and a fine of $250,000. The maximum statutory penalty for each count of structuring transactions to evade the reporting requirement, in violation of Title 31, U.S.C § 5324(a)(3) is five years in prison and a fine of $250,000.
Special Assistant U.S. Attorney Charles Parker is prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.