DETROIT, MI – U.S. District Judge Patrick J. Duggan has dealt a harsh blow to a Detroit-area gas station mogul and his bookkeeper, sentencing them to prison time for their roles in a multi-year tax fraud scheme.
Tom Safiedine, the owner of multiple Detroit-area gas stations, and his bookkeeper Mary Fawaz, were convicted by a Detroit jury of conspiring to defraud the United States by impeding and impairing the lawful functions of the Internal Revenue Service (IRS).
The evidence presented at trial revealed a complex scheme, where Safiedine and Fawaz arranged for third parties to negotiate checks from Sunoco Incorporated made payable to JSC Corporation, a business operated by Safiedine. These 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 scheme did not stop there. Further evidence presented at trial 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.
U.S. District Judge Patrick J. Duggan handed down the sentence, slapping Safiedine with 21 months in prison and Fawaz with 12 months and one day in prison for their respective roles in the conspiracy.
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.
The sentence serves as a stark reminder that tax evasion and conspiracy will not be tolerated in the United States. Safiedine and Fawaz’s actions not only cheated the system but also put their own employees and customers at risk.
As the Grimy Times continues to investigate this case, one thing is clear: those who seek to line their pockets with ill-gotten gains will be held accountable.
Related Federal Cases
- Detroit Fraudster Juan Carlos Pena-Lora Sentenced to 52 Months for Tax Scam · Michigan
- Shimon Shaked Accused of $800,000 Tax Fraud in Duluth Store Scam · Minnesota
- Jones Tyler Martin, Hailey Tykoski Indicted in Marine Romance Scam · North Carolina
- Derrick Franklin Sentenced in Idaho Gift Card Scam · Michigan
- Steven Ingersoll Gets 41 Months for Charter School Tax Fraud · Michigan
