A federal jury has found Semere Tsehaye, the local owner of tax return preparation franchises, guilty of two counts of tax evasion in Missouri.
While operating tax return preparation franchises in three states, Tsehaye generated false financial summaries and filed fraudulent returns to evade paying his own taxes, according to investigators.
The evidence at trial showed that from 2005 to 2011, Tsehaye owned and operated at least 20 Instant Tax Service (ITS) franchise locations in East Saint Louis, Illinois; Kansas City, Kansas; and Kansas City and St. Louis, Missouri.
Tsehaye used two entities, A&S Tax Service LLC and ERI Enterprises LLC, to own and operate his ITS franchise locations, investigators said.
The evidence also showed that during the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI, causing a tax loss of more than $580,000.
Tsehaye faces a statutory maximum sentence of five years in prison for each count of tax evasion, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Caroline D. Ciraolo commended special agents of IRS-Criminal Investigation for their role in the investigation and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division for their prosecution of the case.
Related Federal Cases
- Semere Tsehaye Convicted of Tax Evasion, St. Louis MO, 2023 · Missouri
- Semere Tsehaye, Tax Evasion, MO 2011 · Washington
- Michael Jett Sentenced to 23 Months for Tax Evasion, MO, 2023 · Georgia
- Carl Justin Gage Sentenced to Tax Evasion, Springfield MO, 2023 · Illinois
- Gwendolyn Hampton, Tax Evasion, MO 2009-2013 · Missouri
Key Facts
- State: Missouri
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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