Detroit Gas Station Owner and Bookkeeper Sentenced for Tax Fraud

U.S. District Judge Patrick J. Duggan handed down a harsh sentence to Elsayed Kazem ‘Tom’ Safiedine and Mary Fawaz for their role in a massive tax fraud scheme. Safiedine, the owner of multiple gas stations in the Detroit area, and Fawaz, his bookkeeper, were convicted of conspiring to defraud the United States by impeding and impairing the lawful functions of the IRS.

According to evidence presented at trial, Safiedine and Fawaz arranged for third parties to negotiate checks from Sunoco Incorporated made payable to JSC Corporation. The checks, totaling $845,000, were not properly reported to the accountant for JSC Corporation and as a result, were not included as income on JSC’s corporate tax returns filed with the IRS.

The evidence also revealed that Safiedine and Fawaz participated in the sale of a gasoline station owned by one of Safiedine’s businesses, MTK & KLC Partnership, during which they advised the accountant for MTK & KLC that the gas station sold for $175,000 less than its actual sale price, thus resulting in an understatement of income on the MTK & KLC partnership income tax return.

Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and Barbara L. McQuade, U.S. Attorney for the Eastern District of Michigan, commended the IRS Special Agents who investigated this case and Tax Division Trial Attorneys Mark W. Kotila and Tiwana L. Wright, who prosecuted the case.

Elsayed Kazem ‘Tom’ Safiedine was sentenced to 21 months in prison, while Mary Fawaz received a 12-month and one-day prison sentence for their role in the tax fraud scheme.

The case highlights the importance of proper reporting and the severe consequences of tax evasion. The convictions serve as a reminder to businesses and individuals to comply with tax laws and regulations.

The exact date of the sentencing was not specified, but it is believed to have occurred in recent months. The investigation and prosecution of this case were a collaborative effort between the IRS and the Justice Department’s Tax Division.

Safiedine’s businesses operated and leased gasoline stations in the Detroit area, while Fawaz served as an officer of JSC Corporation and a bookkeeper for several of Safiedine’s businesses.

The case is a significant victory for law enforcement and a reminder of the importance of tax compliance. The Justice Department and the IRS will continue to investigate and prosecute cases of tax evasion and other financial crimes.

The exact dates of the crimes were not specified, but it is believed to have occurred between 1998 and 2001.

MORE FEDERAL CRIME NEWS

White Collar Crime

Ignacio Hernandez, Wire Fraud, Nevada 1999

Jan 15, 1999

White Collar Crime

Elvester Miller, Wire Fraud, Nevada 1992

Jan 15, 1992

White Collar Crime

Jose Garcia, Medicare Fraud, Florida 2024

May 11, 2010

White Collar Crime

F. Jeffrey Miller, Bank Fraud and Money Laundering, Kansas 2014

Dec 15, 2014