The Department of Justice has arrested the owners of a Hudson Valley dealership and charged them with fraud.

According to a release from the U.S. Attorney's Office in the Southern District of New York, Mehdi Moslem and Saaed Moslem were arrested on Friday. The father and son partners own Exclusive Motor Sports in Central Valley.

The Moslems are being accused of defrauding the United States by understating the income and inventory of their used car dealership. Additionally, the duo is being charged with defrauding lenders by submitting loan applications that purposefully overstated their net worth.

Exclusive Motor Sports is located on Route 32 in Central Valley. The used car dealership's website says that Mehdi (Mike) Moslem "has over 40 years of sales experience and has owned car dealerships in New York City." The website credits the owner's "knowledge of auctions, cars, and financing" for the family run business' success. Moslem can be seen in this video, promoting Manheim New York, a wholesale vehicle auction business in Newburgh.

Jonathan D. Larsen, a special agent for the IRS says the arrests "show that underreporting business gross receipts to conceal millions of dollars of income is a serious criminal offense." The charges being brought against the men could result in a very long prison sentence.

The men are being charged with conspiring to defraud the United States which carries a maximum of 5 years in prison. If found guilty of the additional bank fraud charges, the duo could add another maximum of 30 years behind bars. In addition to those charges, Saaed Moslem has been charged with two counts of making false statements to a lender, which carries maximum sentences of 30 years each. The younger Moslem also faces a separate charge of concealing assets and making false declarations in a bankruptcy case.

U.S. Attorney Geoffrey S. Berman said, “As alleged, Mehdi and Saaed Moslem defrauded the United States by understating income and inventory of their auto dealership, and they defrauded lenders by overstating their net worth in loan applications.  Whether allegedly understating or overstating, father and son were falsifying – and committing crimes.”

Exclusive Motor Sports appears to remain open amid the allegations and arrests. The company's Facebook page features an image of a Mercedes C300 that was sold on Tuesday morning.

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