A Baltimore pharmacy owner has pleaded guilty to filing false tax returns, admitting to underreporting millions in income and causing a tax loss of over $1 million. The U.S. Attorney’s Office for the District of Maryland announced that Moshe Gabay, 54, of Baltimore, entered the plea in federal court, acknowledging responsibility for a scheme that misrepresented business finances over multiple years.
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According to the plea, Gabay operated SINU-RX Pharmacy Inc. and had full control over its financial activities. Between 2017 and 2022, he filed both corporate and personal tax returns, falsely classifying personal withdrawals from the pharmacy as legitimate business expenses. These misstatements significantly reduced his reported taxable income, resulting in the substantial tax loss to the IRS.
Gabay directed his bookkeepers and tax preparers to report the diverted funds as the pharmacy’s cost of goods sold, even though the money was used for personal benefit. The total unreported income exceeded $3.5 million during the six-year span. As part of the plea agreement, Gabay will pay more than $1 million in restitution to the Internal Revenue Service.
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The offense carries a maximum penalty of three years in federal prison. Sentencing will be determined by a U.S. District Court judge, who will consider the U.S. Sentencing Guidelines and other legal factors. Federal sentences often result in prison terms below the statutory maximum.
The case was investigated by the IRS Criminal Investigation division, with prosecution handled by Special Assistant U.S. Attorney Jared W. Murphy and Assistant U.S. Attorney Matthew P. Phelps.
Article by multiple RFHC contributors, based upon information from the U.S. Attorney’s Office, District of Maryland
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