BOSTON — In a stunning reversal of fortune, Hazrat Khalid Khan, the 57-year-old owner of several Boston-area fried chicken takeout joints, pleaded guilty today to a litany of financial and immigration fraud. Khan stood before U.S. District Court Judge Rya W. Zobel, accepting responsibility for orchestrating a complex scheme that siphoned off millions from the coffers of both federal agencies and his own employees.
The charges against Khan, who hails from Middletown, N.Y., are substantial: conspiracy to defraud the IRS, failure to collect and pay over taxes, mail fraud, making false statements on a naturalization application, and visa fraud. The plea resolves two cases in Massachusetts and one in New York’s Southern District, all involving Khan’s lucrative restaurant empire.
According to federal documents, Khan and his cohorts systematically evaded paying payroll and income taxes by cashing out their employees and providing fraudulent information to tax preparers. They falsely reported the number of employees and their wages, avoiding the filing of required W-2s and overstating sales and income on tax returns. The scheme spanned years and involved at least 11 restaurants across Boston proper, Roxbury, Chelsea, and Mattapan.
The charges carry stiff penalties: conspiracy and failure to collect taxes could see Khan serving up to five years in the clink; mail fraud holds a potential 20-year sentence; while naturalization and visa fraud carry a maximum of ten years. Sentencing is set for August 16, 2017.
The investigation was a collaborative effort between various law enforcement agencies, including the Internal Revenue Service Criminal Investigation, the FBI Boston Field Division, Homeland Security Investigations in Boston, the Massachusetts Insurance Fraud Bureau, and local Boston police. Assistant U.S. Attorneys John A. Capin and Brian A. Pérez-Daple will lead the prosecution.
As Khan’s fate hangs in the balance, his co-defendants, Khursed Iqbal and Rahman Zeb, remain on the lam, their whereabouts a mystery to investigators.
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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