Hassan Osman Gets 9 Years for Tax Fraud Conspiracy

Minneapolis man Hassan Osman, 52, was sentenced to 108 months in federal prison for orchestrating a brazen tax fraud conspiracy that flooded the IRS with over 90 phony returns. Found guilty on September 21, 2017, after a four-day trial, Osman was convicted on one count of conspiracy, 13 counts of aiding and assisting in the preparation of false tax returns, and one count of unlawful flight from prosecution. The sentence, handed down today by Senior Judge David S. Doty in U.S. District Court, also includes three years of supervised release and $394,120.14 in restitution.

Between January 2008 and April 2011, Osman and his co-conspirators flooded the federal tax system with fraud, creating fake W-2 forms under the names of shell companies to back false claims. Most of the returns were filed electronically—some from coffee shops, others from a business in south Minneapolis owned by Osman. The fraudulent refunds, often deposited onto prepaid debit cards, were then funneled to addresses controlled by Osman and his network. In total, the scheme sought approximately $1,012,877 in illicit refunds.

‘Mr. Osman and his co-conspirators viewed the IRS not as a tax collection agency, but a way to generate illicit revenue,’ said Assistant U.S. Attorney Joe Thompson. ‘They filed 100 fraudulent tax returns claiming nearly $1 million in fraudulent tax refunds.’ Thompson emphasized Osman’s lack of remorse, calling today’s sentence a necessary rebuke to those who treat federal tax law as a loophole to exploit.

The case took a fugitive turn when Osman, arrested in April 2015 and released on bond, failed to appear for a court-ordered pretrial conference on July 28, 2015. A warrant was swiftly issued. He remained at large until April 14, 2016, when he was apprehended in Toronto, Canada, and later extradited back to Minnesota to face trial. His flight only amplified the severity of the original charges.

‘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,’ warned Hubbard Burgess, Acting Special Agent in Charge of the IRS Criminal Investigation’s 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.’

The investigation was conducted by the IRS Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Joseph H. Thompson and Michelle E. Jones. Authorities stress that financial crimes like Osman’s undermine public trust and strain critical government resources—crimes that carry steep consequences, as proven by the 9-year sentence handed down in Minneapolis today.