Unlicensed Auto Dealer Plead Guilty to Fraudulent Schemes and Tax Evasion
On December 15, 2020, the State Grand Jury indicted Ubaidullah Abdur-Rahman and Shamsuddeen Abdur-Rahman on charges of Conspiracy, Fraudulent Schemes and Artifices, Fraudulent Schemes and Practices, Failure to Pay Tax, and Failure to File a Tax Return.
The investigation was performed by the Arizona Curbstoning Enforcement Task Force (ACE-TF), made up of the Arizona Department of Transportation Office of Inspector General and the Arizona Department of Revenue’s Criminal Investigations Unit. ACE-TF detectives discovered that Ubaidullah and Shamsuddeen Abdur-Rahman were selling used motor vehicles to consumers, and filing fictitious vehicle titles with the Arizona Motor Vehicle Division. The fictitious titles listed false addresses as part of a scheme to avoid state emission testing requirements. Additionally, Ubaidullah and Shamsuddeen sold the vehicles for cash without paying transaction privilege tax (TPT) liabilities for state and local jurisdictions. The total taxable sales for the time frame investigated amounted to $231,275, creating a tax liability of $19,755.81.
On February 25, 2021, Ubaidullah pleaded guilty to one count of Fraudulent Schemes and Practices, Failure to Pay Tax, and Failure to File a Tax Return. From tax years 2016 through 2018, Ubaidullah failed to file Arizona income tax returns and did not pay income tax owed in the amount of $1,941. Based on the plea agreement, Ubaidullah Abdur-Rahman has agreed to pay restitution in the amount of $15,779.38, along with a fine of $5,000. Ubaidullah will be placed on probation at the time of sentencing, currently scheduled for April 14, 2021.
On March 29, 2021, Shamsuddeen pleaded guilty to one count of Fraudulent Schemes and Practices, Failure to Pay Tax, and Failure to File a Tax Return. Based on the plea agreement, Shamsuddeen Abdur-Rahman has agreed to pay restitution in the amount of $5,917.43, along with a fine of $2,500. Shamsuddeen will be placed on probation at the time of sentencing, currently scheduled for May 10, 2021.
The Arizona Attorney General’s Office is prosecuting the case. All defendants are presumed innocent until proven guilty in a court of law.
Wednesday, April 21, 2021