Call Now (800) 681-1295
Close

Orange County Car Dealership Owners Charged with Fraud, Conspiracy After Filing False Tax Returns

Table of Contents

    In a press release issued August 2, 2019 by the U.S. Department of Justice, the DOJ announced the indictment of father-son duo Mehdi and Saeed Moslem, who operated an auto dealership in Orange County, California. Orange County Car Dealership Owners Charged with Fraud, Conspiracy After Filing False Tax Returns According to the press release, father and son are charged with an array of felony financial crimes, including bank fraud and conspiracy to defraud the United States. Investigators allege that the pair willfully understated income on federal tax returns, simultaneously exaggerating their dealership’s net worth in order to obtain business loans. Though the defendants have not been charged with tax crimes (such as tax evasion or willful failure to file), the IRS Criminal Division (IRS-CI) played a significant role in the investigation, with IRS-CI Special Agent in Charge Jonathan D. Larsen cautioning taxpayers, “Today’s arrests show that underreporting business gross receipts to conceal millions of dollars of income is a serious criminal offense.” He continued, “IRS Criminal Investigation will pursue those individuals who break the law and violate the American tax system.”

    See our Criminal Tax Law Q and A Library

    Defendants Facing Decades of Prison Time After Underreporting Income, Defrauding U.S.

    The co-defendants, whose cases are being heard by U.S. Magistrate Judge Lisa Margaret Smith, have been charged with a handful of serious offenses, including the following crimes:

    • Son Saeed Moslem, 35, has been charged with (1) one count of conspiracy to defraud the United States, (2) one count of bank fraud conspiracy, (3) two counts of making false statements to a bank or lender, and (4) one count of bankruptcy fraud, which involves concealing or undervaluing assets.
    • Father Mehdi Moslem, 70, has been charged with (1) one count of conspiracy to defraud the United States, and (2) one count of bank fraud conspiracy.

    The maximum sentence for conspiracy to defraud the U.S. is five years in prison. Each count of bank fraud conspiracy is punishable by up to 30 years in prison, a sentence six times longer. Up to 30 years of prison time may also be sentenced for making false statements to lenders, while bankruptcy fraud is punishable by up to five years. When determining what sort of sentence is appropriate within the federal sentencing guidelines, judges consider factors like the severity of the offense, a defendant’s criminal history (if any), and a defendant’s personal and professional background.

    “Whether allegedly understating or overstating,” said U.S. Attorney Geoffrey S. Berman, “father and son were falsifying – and committing crimes” in the process. These crimes were allegedly committed over the following periods:

    • From 2009 to 2016, the defendants allegedly failed to report income to the IRS.
    • From 2011 to 2017, the defendants allegedly lied to various lenders, obtaining at least one loan in excess of $1 million (on which they later defaulted).
    • In 2015, Saeed Moslem filed for bankruptcy, at which point he allegedly hid assets from creditors in order to avoid repaying certain debts. Bankruptcy rules require debtors to truthfully disclose their assets, so that bankruptcy trustees can ensure creditors are repaid fairly.

    Tax Evasion and IRS Audit Defense Attorneys for Car Dealerships in California

    Echoing the words of Agent Larsen, FBI Assistant Director William F. Sweeney, Jr. had a stern warning for taxpayers: “The popular saying about certainties in life omits a third guarantee – when the FBI and IRS catch you engaging in fraudulent behavior and illegal business practices, you will be charged.” A glance at IRS criminal statistics – particularly those on convictions and sentencing – confirms that this is not an idle threat. The IRS, FBI, and DOJ work in tandem, sharing technology and information to unravel even the most complex tax fraud schemes. In most cases, the end result is a finding of “guilty” – and a lengthy prison sentence to accompany it, along with high fines, IRS restitution, and supervised release.

    If you are under investigation for tax crimes or white collar crimes, or if you have been chosen for a tax audit, the time to consult with a tax attorney is now. IRS audit representation is especially important for auto dealership owners, who are at elevated risk of being singled out by the Service. To speak confidentially with a tax audit lawyer for car dealerships, or with an income tax evasion attorney in Orange County, contact the Tax Law Offices of David W. Klasing online, or call today at (800) 681-1295 for a reduced-rate consultation.

    See our Audit Representation Q and A Library

    Also, we’ve expanded our offices! In addition to our offices in Irvine and Los Angeles, the Tax Law Offices of David W. Klasing now have offices San BernardinoSanta BarbaraPanorama CityOxnardSan DiegoBakersfieldSan Jose, San FranciscoOakland and Sacramento.

    Note: If you have concerns about the privacy of our initial or subsequent communication and are unable to easily travel to our Irvine / Orange County Main Office, consider scheduling a GoToMeeting to safely and securely establish an initial or maintain an existing attorney client relationship.  With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link.   Call our office and request a GoToMeeting if you are an existing client. We are generally happy to travel to any of our appointment only satellite offices for a subsequent meeting in appropriate circumstances once a relationship is established via a signed engagement letter and the payment of an initial retainer or where enough retainer is available where a current client to cover the reasonable travel time and time required for the meeting.

    Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company?  Absolutely not!  See our policies that address this issue here

    Tax Help Videos

    Representing Clients from U.S. and International Locations Regarding Federal and California Tax Issues

    tax lawyers

    Main Office

    Orange County
    2601 Main St. Penthouse Suite
    Irvine, CA 92614
    (949) 681-3502

    Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

    Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

    Satellite Offices

    California
    (310) 492-5583
    (760) 338-7035
    (916) 290-6625
    (415) 287-6568
    (909) 991-7557
    (619) 780-2538
    (661) 432-1480
    (818) 935-6098
    (805) 200-4053
    (510) 764-1020
    (408) 643-0573
    (760) 338-7035
    Arizona
    (602) 975-0296
    New Mexico
    (505) 206-5308
    New York
    (332) 224-8515
    Texas
    (512) 828-6646
    Washington, DC
    (202) 918-9329
    Nevada
    (702) 997-6465
    Florida
    (786) 999-8406
    Utah
    (385) 501-5934