Date: February 13, 2020
A federal grand jury in Salt Lake City, Utah, returned an indictment today charging Sergio Sosa, and his adult children, Alissa and David Sosa, with conspiracy to defraud the United States. Sergio Sosa was also charged with one count of tax evasion, and he and his children were also each charged with one count of corruptly endeavoring to obstruct the administration of the internal revenue laws.
According to the indictment, Sosa owned and operated Sergio Central Latino (SCL), a tax return preparation business in Orem, Utah, where both Alissa and David worked. From 2003 through 2017, Sosa allegedly did not timely file his personal tax returns and after multiple audits, the Internal Revenue Service (IRS) determined that he owed more than $750,000 in unpaid taxes. When the IRS began collection efforts, Sosa and his children allegedly agreed to obstruct IRS collection of the outstanding taxes by hiding Sosa's personal assets, residential properties, and by titling SCL in the children's names.
The indictment also alleges that when the IRS suspended SCL's ability to electronically file client tax returns due to Sosa's unpaid taxes, David Sosa changed SCL's business name and obtained electronic filing authorization in a third party's name. It is further alleged that Alissa Sosa falsely represented to the IRS that she owned a residence that was, in fact, her father's, and that she withdrew funds from an account that she knew had been levied by the IRS. As of 2019, Sosa allegedly owes more than $1.1 million in taxes, penalties, and interest.
If convicted, the Sosas each face a statutory maximum sentence of five years in prison for the conspiracy charge and three years in prison for corruptly endeavoring to obstruct the administration of the internal revenue laws. Sergio Sosa faces an additional five years in prison for tax evasion. The Sosas also face a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This investigation was conducted by special agents of IRS-Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Ruth Hackford-Peer and Trial Attorney Erin S. Mellen of the Tax Division.