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Tax Fraud Lands Detroit Gas Station Owner Behind Bars
A Detroit area gas station owner has been sentenced to 21 months in prison for his role in a massive tax fraud scheme. Elsayed Kazem ‘Tom’ Safiedine, the owner of several gasoline stations in the Detroit area, was convicted of conspiring to defraud the United States by impeding and impairing the lawful functions of the IRS.
The scheme, which spanned from 1998 to 2001, involved Safiedine and his bookkeeper, Mary Fawaz, arranging for third parties to negotiate checks from Sunoco Incorporated made payable to JSC Corporation. The checks, which totaled $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.
Further evidence presented in court revealed that Safiedine and Fawaz also participated in the sale of a gasoline station owned by one of Safiedine’s businesses, MTK & KLC Partnership. During the sale, Safiedine and Fawaz 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 sentences, with Safiedine receiving 21 months in prison and Fawaz receiving 12 months and one day in prison. The sentences mark the end of a lengthy investigation by the IRS Special Agents and the prosecution of the case by Tax Division Trial Attorneys Mark W. Kotila and Tiwana L. Wright.
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 work of the investigators and prosecutors in bringing this case to a close.
The sentences handed down by Judge Duggan serve as a reminder of the consequences of tax fraud and the importance of compliance with tax laws. The case is a stark reminder that tax evasion will not be tolerated, and those who engage in such activities will be held accountable.
The case is a significant victory for the IRS and the taxpayers of this country. It demonstrates the commitment of the Justice Department to enforcing tax laws and protecting the integrity of the tax system. The sentences handed down by Judge Duggan are a testament to the dedication and hard work of the investigators and prosecutors who worked tirelessly to bring this case to a close.
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Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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