Businessman pleads guilty in tax scheme
By Staff Reports
Aug 23, 2013, 13:03
RICHMOND — A former Hopewell gas station owner faces prison time after he pleaded guilty to filing a false tax return.
Federal prosecutors say Inderjit Singh, formerly of Chester, falsified his 1040 tax return document for 2010, reporting $44,649 for MGI Fuel Express when he knew the income was substantially more.
The maximum penalties for filing a false tax return are three years in prison, a fine of up to $250,000 and full restitution, including paying the Internal Revenue Service for any tax losses from 2009 through 2011.
Court documents say the IRS lost between $30,000 and $80,000.
The plea on Aug. 12 in U.S. District Court in Richmond settled other charges that Singh, who now lives in New Jersey, tried to structure over $2 million in cash to avoid government reporting requirements.
Singh owned the Valero convenience store and gas station on Oaklawn Boulevard in Hopewell.
Court records indicate that from Jan. 1, 2010, to April 5, 2011, Singh made multiple cash deposits, causing the bank not to file a currency transaction report. The government requires banks to report to the Internal Revenue Service, cash transactions of $10,000 or more.
Documents say Singh structured his deposits to be less than $10,000 at both BB&T and the Bank of McKenney.
Singh was charged with three counts of structuring payments and one count of attempting to cause a financial institution to fail to file a currency transaction report. If he was found guilty of these charges, Singh could have faced losing more than $2 million, the amount he structured.
Singh’s sentencing is scheduled for Nov. 15 at 9:30 a.m. in Richmond.