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Two West Bloomfield Residents Plead Guilty to Tax Fraud in Michigan
West Bloomfield, MI – Two West Bloomfield residents, Maher Bashi and Tom Yaldo, pleaded guilty to tax fraud in the U.S. District Court for the Eastern District of Michigan, announced the Justice Department and Internal Revenue Service (IRS). This shocking admission came after a lengthy investigation into the pair’s involvement in a scheme to defraud the United States.
As the corporate chief operating officer of Happy’s Pizza, Bashi, along with Yaldo, an owner of numerous Happy’s Pizza franchises, engaged in a conspiracy to defraud the United States. According to the indictment, their conduct included creating and maintaining fraudulent accounting records and falsely reporting income taxes and payroll taxes. The indictment alleges that from June 2004 to April 2011, the pair and others conspired to divert business receipts, underreport wages, and understate the true income and expenses of specified Happy’s Pizza franchises.
According to the indictment, the scheme resulted in the specified franchises paying more than $2.1 million in unreported wages to employees and shareholders. Documents filed with the court indicate that the pair and others executed a scheme to systematically underreport the taxable income and payroll taxes of Happy’s Pizza franchises to the IRS and distributed the resulting gain among the conspirators and other Happy’s Pizza franchise partners.
Additionally, documents filed with the court indicate that Yaldo caused at least three Happy’s Pizza franchises in which he held an ownership interest to file false corporate income tax returns in 2008 and 2009 that underreported a total of more than $1,581,000 in gross receipts. Under the plea agreement, Bashi and Yaldo will pay restitution to the IRS for unpaid income taxes and employment taxes.
The case was investigated by the IRS – Criminal Investigation, the Drug Enforcement Administration, and the FBI. It is being prosecuted by Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Justice Department’s Tax Division. Bashi and Yaldo each face a statutory maximum sentence of five years in prison and a fine of up to $250,000.
The guilty pleas of Bashi and Yaldo mark a significant victory in the ongoing fight against tax fraud in Michigan. As the investigation continues, it is clear that the consequences of engaging in such schemes will be severe. The Grimy Times will continue to provide updates on this case as more information becomes available.
This case highlights the importance of vigilance in preventing and detecting tax fraud. The IRS and other law enforcement agencies are working tirelessly to root out such schemes and bring those responsible to justice. The Grimy Times applauds their efforts and will continue to provide comprehensive coverage of this case.
Key Facts
- State: Michigan
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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