Michigan Business Owner Pleads Guilty to Filing False Tax Return and Employment Tax Crime

A Michigan man pleaded guilty today to filing a false tax return for his international vehicle shipping business along with not paying taxes on cash wages he paid to his employees.

According to court documents and statements made in court, Ali Kassem Kain owned and operated a business called Specialized Overseas Shipping that arranged for vehicles to be shipped to West Africa and other destinations for third parties. For tax years 2017 through 2020, Kain underreported the company’s gross receipts by $6.4 million on the business’ tax returns. Kain also did not collect and pay over to the IRS taxes on $249,000 in cash wages he 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 in prison 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.

U.S. District Judge Matthew F. Leitman for the Eastern District of Michigan scheduled sentencing for Aug. 14.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation and the FBI Detroit Field Office are investigating the case.

Trial Attorneys Richard J. Kelley and Jeffrey A. McLellan of the Tax Division are prosecuting the case.