VIRGINIA
Two subway franchise managers and a gas station manager plead guilty to filing false tax returns, according to authorities.
Court records indicate that Mohammed Ali, 54, of Herndon, Virginia, owned and operated multiple Subway restaurant franchises in Washington, D.C. and Arlington, Virginia, with Obdayel Hoque, 49, of Alexandria, Virginia.
Ali ran the day-to-day operations of the Subway franchises located in Washington, D.C.
These franchises were operated under the name Subway Sandwich & Salad, Inc. Mohammed Rahman, 43, of Alexandria and Arlington, was a working partner with Ali and Hoque and the day-to-day manager of a Subway franchise located in Washington, D.C.
Mohammed Siddique, 53, of Alexandria, was a working partner with Hoque and the day-to-day manager of a gas station in Alexandria, Virginia called Skyhill Shell.
“Today’s guilty pleas send a clear message that business owners and operators who seek to evade their tax obligations and avoid paying their fair share will be held accountable,” said Acting Assistant Attorney General Caroline Ciraolo.
Ali, Rahman and Siddique admitted that they failed to report to the IRS on their individual income tax returns their receipt of unreported gross receipts. Ali admitted to causing a tax loss of more than $550,000 but less than $1.5 million.
Rahman admitted that his conduct caused a tax loss of more than $250,000 but less than $550,000.
Siddique admitted that his conduct caused a tax loss of more than $100,000 but less than $250,000.
Hoque pleaded guilty on Jan. 27 to conspiracy to defraud the federal government and admitted that his conduct caused a tax loss to the IRS of between $1.5 million and $3.5 million. Hoque is scheduled to be sentenced on May 13.
Rahman, Ali and Siddique each face up to three years in prison and a $250,000 fine.
As part of their plea agreements, Rahman, Ali and Siddique agreed to pay restitution to the IRS for their personal tax liabilities.
U.S. District Judge Liam O’Grady set sentencing for July 15.