Mehdi Moslem, 70 and Saaed Moslem, 35, father-and-son operators of the Exclusive Motor Sports car dealership in Central Valley, were arrested yesterday on tax and bank fraud charges.
A joint statement containing the details of the case was released by Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Jonathan D. Larsen, Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation.
It alleges that the father and son under reported income to the IRS and over reported income to lenders.
It states that, from 2009 to 2016, Mehdi and Saaed Moslem concealed millions of dollars in profits from the IRS by causing their account to file tax returns that significantly understated the dealerships gross receipts and inventory. It states that Saaed Moslem then used these returns (and other false statements) to conceal assets when filing for bankruptcy in 2015.
While under reporting was advantageous for tax returns, over reporting the dealership’s income was beneficial for seeking loans. Investigators say that from 2011 through 2017, Mehdi and Saaed Moslem also conspired to defraud multiple financial institutions by submitting falsely inflated net worth statements and fabricated tax returns in connection with loan applications, including for a $1.2 million mortgage on the Exclusive Motor Sports property in Central Valley, on which they later defaulted.
Both were charged with charged with one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison, and one count of bank fraud conspiracy, which carries a maximum sentence of 30 years in prison.
Saaed Moslem was further charged with two counts of making false statements to a lender, each of which carries a maximum sentence of 30 years in prison, and one count of concealing assets and making false declarations in a bankruptcy case, which carries a maximum sentence of five years.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Mehdi and Saaed Moslem defrauded the United States by understating income and inventory of their auto dealership, and they defrauded lenders by overstating their net worth in loan applications. Whether allegedly understating or overstating, father and son were falsifying – and committing crimes.”
FBI Assistant Director William F. Sweeney Jr. said: “Lying to financial institutions and skirting the regulations put in place by U.S. tax laws is a violation of federal law, crimes both Mehdi and Saaed Moslem are charged with today. The popular saying about certainties in life omits a third guarantee – when the FBI and IRS catch you engaging in fraudulent behavior and illegal business practices, you will be charged.”
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