Tax Fraud A & A Tires Ijaz Ghani (Sentence: 10 months) Mohammad Ahad Parvez (Sentence: 16 months) Action Date: November 2, 2007 Location: Sacramento, CA On October 30, 2007, Sacramento, Calif., Mohammad Ahad Parvez and Ijaz Ghani were sentenced to 16 months in prison and 10 months of imprisonment/home detention, respectively. In May 2007, Parvez and Ghani, owners of A & A Tires, pleaded guilty and admitted that they maintained two sets of accounting books for A & A, one which accurately reflected the gross receipts or sales for the business, and one which substantially understated the gross sales for the business. In 2004, A & A had gross sales of approximately $1,586,998 and each defendant, a 50% partner, had to declare that he had received approximately $793,499, on his individual tax return. However, on his 2004 tax return, Parvez reported only $30,732 in income from another unrelated business and did not report any of the $793,499 in income he had received from A & A. Ghani reported on his 2004 tax return that he received $329,065 of gross receipts associated with A & A, but falsely failed to report that he had received $464,434 of additional income from A & A in that year. Their underreporting of income resulted in a tax loss of $57,051 from Parvez and $52,832 from Ghani. In addition, Parvez acknowledged as part of his plea agreement that, on a series of occasions, he purposefully made deposits at various local banks in amounts less than $10,000 or “structured deposits” in order to avoid the currency transaction reporting requirements. As part of the plea and sentence, Parvez forfeited approximately $24,000 from one of his business bank accounts and paid full restitution of $57,051 to the IRS for his owed taxes. Ghani has paid restitution of $52,832 to the IRS for his owed taxes and was ordered to pay a fine of $3,000.00.