A Michigan man pleaded guilty to filing a false tax return for his international vehicle shipping business and failing to pay taxes on cash wages he provided to his employees.
According to court documents and statements made in court, Ali Kassem Kain owned and operated Specialized Overseas Shipping, which arranged for vehicles to be shipped to West Africa and other destinations for third parties.
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For tax years 2017 through 2020, Kain underreported the company’s gross receipts by $6.4 million on the business’s tax returns.
He also failed to collect and pay over to the IRS taxes on $249,000 in cash wages paid to his employees.
Kain faces a maximum penalty of five years in prison for the employment tax offense and a maximum penalty of three years for filing a false tax return.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Eastern District of Michigan scheduled sentencing for Aug. 14.
The IRS Criminal Investigation and the FBI Detroit Field Office are investigating the case.
