The proprietor of a series of Seattle-area bikini barista espresso stands pleaded responsible final week to tax fraud and faces as much as three years in jail.
In a plea settlement, 47-year-old Assad Baragzai of Auburn, Washington, admitted that between 2016 and 2020, he did not report as a lot as $6 million value of earnings on his tax returns, in accordance with investigators.
Baragzai, who owns a string of espresso stands in Washington State below the identify Ladybug Espresso, is the second defendant to enter a responsible plea within the investigation. His brother-in-law, Rajesh Mathew of Auburn, additionally pleaded responsible to tax fraud.
Prosecutors say Matthew additionally “underreported a considerable quantity of earnings over a interval of a number of years.” Matthew’s sentencing is scheduled for Oct. 9, whereas Baragzai’s sentencing is scheduled for Nov. 18.
The case has been investigated by an IRS unit and is being prosecuted by Assistant United States Legal professional Michael Dion.
The federal government contends that the tax loss over the 5 years that Baragzai underreported his earnings is greater than $1.7 million. Bargzai disputes the determine, and as a substitute claims the tax loss to be $1.3 million. A choose will decide the precise tax loss throughout sentencing.
“Each Baragzai and Mathew have agreed to make restitution to the Inner Income Service,” america Legal professional’s workplace for the Western District of Washington stated in an announcement of the plea deal. “Each may additionally face further civil penalties, fines, and curiosity for the tax loss.”
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