Truth Technologies News

08-11-2016 - Anti-Money Laundering

Bank Leumi And Other Israeli Banks Helped LA Businessman Hide $21 Million

Masud Sarshar, a Los Angeles businessman, pleaded guilty to using undeclared bank accounts at Bank Leumi and other Israeli banks to hide $21 million and avoid paying U.S. taxes.

He signed a plea agreement admitting one count of conspiracy to defraud the United States and one count of obstructing the internal revenue laws which requires him to serve 24 months in prison, pay more than $8.3 million in restitution to the IRS, and forfeit half the money that went into the accounts.

Between 2006 and 2009, he diverted more than $21 million in untaxed business income to the undeclared bank accounts, which earned more than $2.5 million in interest.

Caroline Ciraolo, head of the DOJ's Tax Division, said, “The message of this case is clear: There are no safe havens" for those who avoid paying their taxes or those who help them.

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