Father, son car dealership owners defrauded lenders, IRS
CENTRAL VALLEY, NY – Father and son who own an Orange County auto dealership will go to jail for falsifying tax returns and statements of financial worth.
Damian Williams, the United States Attorney for the Southern District of New York, said Saaed Moslem, 39, and his father Mehdi Moslem, 73, both of Central Valley, were sentenced to 8 years in prison on Monday. and 3 and a half years in prison. jail, respectively, for defrauding their lenders and the IRS.
They had already been convicted of multiple offenses following a two-and-a-half-week jury trial in June.
Williams said the penalties send a strong message that perpetrators of fraud will be held accountable for their actions.
“This father and son duo spent nearly a decade lying about their finances to secure millions of dollars in fraudulent loans while hiding their income from the IRS and, in the case of Saaed Moslem, avoiding his creditors by through a fraudulent bankruptcy filing,” he said.
According to prosecutors, from 2009 to 2018, the father and son conspired to defraud the United States by concealing profits related to their car dealership, Exclusive Motor Sports, and other businesses from the IRS.
To wrongfully reduce their business income, they had their accountant prepare partnership tax returns that significantly understated the company’s inventory.
The fraudulent business income figures were passed on to their personal tax returns, contributing to underpayment of nearly $1 million in federal and state taxes.
From 2011 to 2019, Muslims also conspired to commit bank fraud by providing falsely inflated net worth statements and fabricating tax returns as part of loan applications, including for a $1.5 million mortgage. dollars on the Exclusive Motor Sports property in Central Valley.
Saaed Moslem then made numerous false statements to conceal his assets from financial institutions and other creditors when he filed for bankruptcy in 2015.
As a result, according to prosecutors, more than half a million dollars in unsecured debts were fraudulently discharged in the proceedings.
In 2019, Saaed Moslem committed aggravated identity theft by using a customer’s personal information as part of a fraudulent auto credit application.
In addition to their prison sentences, the father and son were sentenced to three years of probation.
Mehdi Moslem was also sentenced to pay compensation of $1,040,685 and a fine of $100,000. Saaed Moselm was ordered to pay forfeiture in the amount of $1,927,303 and a fine of $200,000.