Date: May 1, 2025
Contact: newsroom@ci.irs.gov
Baltimore, MD — Today, Moshe Gabay of Baltimore, Maryland — the owner of a Baltimore pharmacy — pled guilty to one count of filing false tax returns with the Internal Revenue Service (IRS). On the fraudulent tax returns, Gabay underreported his income by more than $3.5 million which meant he owed more than $1 million in taxes.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty plea with Special Agent in Charge Kareem Carter, Internal Revenue Service – Criminal Investigation (IRS-CI), Washington D.C. Field Office.
In his guilty plea, Gabay acknowledged that he owned and operated SINU-RX Pharmacy Inc. (SINU-RX), located in Baltimore. Gabay controlled SINU-RX’s finances and was responsible for directing interactions and providing information to SINU-RX’s bookkeepers and tax preparers.
From tax years 2017 through 2022, Gabay’s tax returns were filed on his behalf. Gabay’s tax returns included Form 1120-S, U.S. Income Tax Return for an S Corporation, for SINU-RX and Form 1040, U.S. Individual Income Tax Return.
He intentionally and knowingly provided information to his bookkeepers and tax-return preparers that falsely categorized funds taken from SINU-RX. These funds were listed as business expenses, specifically for the cost of goods sold. But Gabay had diverted these funds to himself for his personal use. Pursuant to the guilty plea, Gabay agreed to pay restitution of more than $1 million.
Gabay faces a maximum sentence of three years in federal prison for filing a false tax return. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Hayes commended the IRS-CI for its work in the investigation. Ms. Hayes also thanked Special Assistant U.S. Attorney Jared W. Murphy and Assistant U.S. Attorney Matthew P. Phelps who are prosecuting the federal case.
IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate. The agency has 20 field offices located across the U.S. and 14 attaché posts abroad.