Middlesex County man admits filing false corporate tax return

 

Date: May 2, 2022

Contact: newsroom@ci.irs.gov

A Middlesex County, New Jersey man today admitted to filing a false tax return on behalf of his company, U.S. Attorney Philip R. Sellinger, Acting Assistant Attorney General David A. Hubbert, and Acting Deputy Assistant Attorney General Stuart M. Goldberg announced.

Gabriel M. Ferrari, of Edison, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to Count Four of an indictment that charged him with subscribing to a false tax return.

According to documents filed in this case and statements made in court:

Ferrari was the sole owner of Buses and Trucks Inc., an automotive repair business in Linden, New Jersey. In January 2015, Ferrari subscribed to and caused to be filed a corporate tax return for Buses and Trucks for tax year 2011. As Ferrari knew at the time, that return was false in that it understated Buses and Trucks' gross receipts for tax year 2011. In fact, Ferrari had diverted Buses and Trucks' gross receipts to pay personal expenses, including gambling on horse races, and did not report those diverted receipts on the Buses and Trucks 2011 corporate tax return.

The charge of subscribing to a false tax return carries a maximum potential penalty of three years in prison and a maximum fine of $250,000. Sentencing is set for September 14, 2022.

U.S. Attorney Sellinger, Acting Assistant Attorney General Hubbert, and Acting Deputy Assistant Attorney General Goldberg credited special agents of IRS Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to today's guilty plea.

The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark and by Trial Attorney Ann M. Cherry of the Tax Division in Washington, D.C.