Hudson Valley, New York Car Dealers Sent To Prison For Fraud
Owners of a family-owned car dealership in the Hudson Valley are heading to prison for fraud.
On Monday, Damian Williams, the United States Attorney for the Southern District of New York, announced that Saaed Moslem was sentenced to 96 months in prison. His father, Mehdi Moslem was sentenced to 40 months.
Central Valley, New York Car Dealers Sentenced For Fraud
The father and son owned Exclusive Motor Sports on Route 32 in Central Valley, New York
The prison sentences were related to defrauding their lenders and IRS. Both were found guilty of multiple offenses following a two-and-a-half-week jury trial in June 2021.
"This father and son duo spent nearly a decade lying about their finances to get millions of dollars in fraudulent loans while hiding their income from the IRS and, in Saaed Moslem's case, evading his creditors through a fraudulent bankruptcy filing. Today's sentences send a strong message that perpetrators of fraud will be held accountable and brought to justice for their actions," U.S. Attorney Damian Williams stated.
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Owners Of Orange County Car Dealership Arrested On Tax And Bank Fraud Charges
From 2009 through 2018, Mehdi Moslem and Saaed Moslem conspired to defraud the United States by concealing profits relating to their car dealership, Exclusive Motor Sports, and other businesses from the IRS, according to statements in the indictment, evidence presented at trial and sentencing, other public filings, and statements in court.
"To falsely lower their business income, Mehdi Moslem and Saaed Moslem, among other things, caused their accountant to prepare partnership tax returns that significantly understated Exclusive Motor Sports' inventory. The fraudulent business income figures passed through to Mehdi Moslem's and Saaed Moslem's personal tax returns, contributing to a nearly $1 million underpayment in federal and state taxes," the United States Attorney for the Southern District of New York stated in a press release.
From 2011 through 2019, both also conspired to commit bank fraud by providing inflated net worth statements and fabricated tax returns in connection with loan applications, including for a $1.5 million mortgage on the Exclusive Motor Sports property in Central Valley, officials say.
Saaed Moslem also made many false statements to conceal his assets from financial institutions and other creditors when he filed for bankruptcy in 2015.
"As a result, more than half a million dollars of unsecured debt was fraudulently discharged in the proceedings. In 2019, Saaed Moslem committed aggravated identity theft by using a customer's personal identifying information in connection with a fraudulent car loan application," officials add.
Father-And-Son Owners Of Orange County Car Dealership Convicted Of Multiple Fraud Offenses
In addition to their prison terms, both Central Valley, New York men were also sentenced to three years of supervised release.
Mehdi Moslem was ordered to pay $1,040,685.58 in restitution and fined $100,000. Saaed Moslem must pay forfeiture in the amount of $1,927,303.25 and a $200,000 fine.