Middletown man facing federal charges on income tax fraud

Middletown man facing federal charges on income tax fraud

A local business owner is facing federal charges in connection with alleged income tax fraud.

Mohammed Bassini, 47, of Middletown, is accused of committing income tax fraud relative to underreporting the gross receipts or net sales returns earned by the Subway franchises he owned, according to the office of the United States Attorney for the Southern District of Ohio.

Bassini owns Subway franchises in Mason, Miamisburg and Monroe, according to Jennifer Thornton, spokeswoman for the U.S. Attorney’s Office.

Bassini was charged with two counts of filing false income tax returns with the Internal Revenue Service, one count of aiding or assisting in the preparation and filing of a false income tax return with the IRS, and four counts of failing to file an income tax return with the IRS.

According to the indictment, it has been alleged that Bassini filed a false 2009 corporate income tax return for Sima Holding Corporation, and a false 2011 corporate income tax return for Mason Trades Corporation with the IRS.

On the 2009 Sima Holding Corporation income tax return, gross receipts were claimed in the amount of $2,624,418, and on the 2011 Mason Trades Corporation income tax return, gross receipts were claimed in the amount of $831,000.

In both instances, it has been alleged that Bassini knew and believed that the gross receipts were greater than the amount reported.

In addition, it has been alleged that Bassini aided and assisted in the preparation and filing of a false 2010 corporate income tax return for Sima Holding Corporation with the IRS. Gross receipts were claimed in the amount of $3,009,152; however, Bassini allegedly knew and believed that the gross receipts were greater than the amount reported.

He is also accused of failing to file personal income tax returns with the IRS for the 2011, 2012, 2013, and 2014 income tax years.

Bassini pleaded not guilty at his arraignment today and was released on bond.

Filing a false income tax return with the IRS and aiding and assisting in the preparation and presentation of fraudulent income tax returns to the IRS carry a maximum penalty of three years in prison and a fine of up to $250,000. Failing to file an income tax return with the IRS carries a maximum penalty of one year in prison and a fine of up to $25,000.

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