Baltimore Pharmacy Owner Sentenced to Prison for Tax Evasion Scheme

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Moshe Gabay, a 55-year-old pharmacy owner from Baltimore, Maryland, has been sentenced to one year and one day in federal prison, followed by one year of supervised release, for his involvement in a scheme that resulted in over $1 million in tax losses. The U.S. Attorney’s Office for the District of Maryland announced the sentencing, which also includes a $100 special assessment and restitution of $1,039,585 to the IRS.

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Gabay, the owner of SINU-RX Pharmacy Inc. in Baltimore, was responsible for the company’s financial management and for providing information to its bookkeepers and tax preparers. Between 2017 and 2022, Gabay intentionally misled these professionals by falsely classifying over $3.5 million in funds diverted from the pharmacy for his personal use as business expenses, specifically as the cost of goods sold. This misrepresentation led to a significant underreporting of his income on both his corporate and individual tax returns. As a consequence of these actions, Gabay owed more than $1 million in taxes that he failed to pay. He has agreed to repay this amount as part of his sentence. The investigation and prosecution of this case were carried out by the IRS – Criminal Investigation (IRS-CI) and the U.S. Attorney’s Office for the District of Maryland.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, District of Maryland

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