San Francisco – The grim reaper of the criminal world, Muzaffar Hussain, 69, of Pleasanton, Calif., and Houston, Texas, has been handed a 18-month prison sentence and ordered to fork over $495,000 in restitution for his tax crimes. United States Attorney Brian J. Stretch and Internal Revenue Service’s Michael T. Batdorf announced the verdict today.
Hussain, who was once the Chief Financial Officer of San Francisco Bay Area-based Crossroads Home Health Care, Inc., pleaded guilty last year to failing to account for and pay over trust fund taxes. He admitted to siphoning funds from the company’s bank accounts to his personal coffers, including using the money to fuel his other business ventures.
According to the plea agreement, Hussain systematically transferred funds from Crossroads’ accounts to his control, often in amounts matching employment taxes. He also directed a payroll service to file false Employer’s Quarterly Federal Tax Returns, misleadingly indicating lower wages paid than were actually paid.
Hussain was indicted by a federal grand jury on July 30, 2015, facing charges of making or subscribing false tax returns, willful failure to truthfully account for and pay over taxes, and structuring transactions to evade reporting requirements. His guilty plea led to the dismissal of all but one count.
Judge Jon Tigar handed down the sentence, also imposing a three-year period of supervised release on Hussain. The defendant is required to begin serving his sentence by August 2, 2017.
Assistant U.S. Attorney Cynthia Stier prosecuted the case, which was investigated by the Internal Revenue Service’s Criminal Investigation division.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
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