Gabriel M. Ferrari, False Tax Return, New Jersey 2015

Grimy Times has uncovered the latest in corporate tax return scandals, this time in Middlesex County, New Jersey.

According to a recent guilty plea, Gabriel M. Ferrari, 64, of Edison, New Jersey, admitted to filing a false tax return on behalf of his company, Buses and Trucks Inc., an automotive repair business in Linden, New Jersey. Ferrari pleaded guilty to Count Four of an indictment, which charged him with subscribing to a false tax return.

The crime took place in January 2015, when Ferrari subscribed to and caused to be filed a corporate tax return for Buses and Trucks for tax year 2011. However, as Ferrari knew at the time, that return was false in that it understated Buses and Trucks’ gross receipts for tax year 2011.

Investigations revealed that Ferrari had diverted Buses and Trucks’ gross receipts to pay personal expenses, including gambling on horse races, and did not report those diverted receipts on the Buses and Trucks 2011 corporate tax return.

Ferrari faces a maximum potential penalty of three years in prison and a maximum fine of $250,000. Sentencing is set for September 14, 2022.

U.S. Attorney Philip R. Sellinger, Acting Assistant Attorney General David A. Hubbert, and Acting Deputy Assistant Attorney General Stuart M. Goldberg credited special agents of IRS Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark and by Trial Attorney Ann M. Cherry of the Tax Division in Washington, D.C.

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