A father and son who own a Hudson Valley auto dealership are facing charges for an alleged multi-million dollar tax and bank fraud scheme.
Central Valley residents Mehdi and Saeed Moslem, the owners of the Exclusive Motor Sports car dealership in their Orange County hometown, were arrested and indicted for their roles in conspiring to defraud the United States, U.S. Attorney Geoffrey Berman announced.
It is alleged that from 2009 through 2016, Mehdi Mosel, 70 and his son, 35, concealed millions of dollars in profits from the IRS that were tied to their dealership.
Berman said that to falsely lower their business income, the two caused their accountant to prepare partnership tax returns that “significantly understated” Exclusive Motor Sports’ gross receipts and inventory. Those false figures were then listed on their personal tax returns, which were filed with the IRS, resulting in a "substantial underreporting of the amount of tax due."
The younger Moslem then allegedly used his fraudulent income tax returns and made other false statements in an attempt to conceal his assets from creditors when he filed for bankruptcy in 2015.
According to the indictment, from 2011 through 2017, the two men also conspired to defraud several financial institutions by submitting falsely inflated net worth statements and fabricated tax returns on loan applications, including for a $1.2 million mortgage on the Exclusive Motor Sports property in Central Valley, on which they later defaulted.
Both men have been charged with one count of conspiracy and one count of bank fraud, which carries a maximum sentence of five years in prison if they are convicted. Saeed Moslem was also charged with two counts of making false statements to a lender, which has a maximum sentence of 30 years in prison; and one count of making false declarations in a bankruptcy case.
“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,” Berman said in a statement. “Whether allegedly understating or overstating, father and son were falsifying – and committing crimes.”
No return court date has been announced for the two men.
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.”
Click here to sign up for Daily Voice's free daily emails and news alerts.