Husband and Wife Sentenced to Prison for Running a Tax Fraud Scheme

Raul Sosa and Maura Sosa were sentenced to terms of imprisonment of 78 months and 48 months, respectively, by United States District Court Chief Judge K. Michael Moore, following their convictions by a Miami jury for criminal tax offenses arising out of a five-year scheme to defraud the Internal Revenue Service.  Judge Moore also ordered the defendants to pay $1,488,213.85 in restitution and serve three years of supervised release following their release from prison.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement. 

The defendants were convicted on November 10, 2015, following a six-day trial before Judge Moore.  According to evidence presented at trial, starting in 2003, the defendants, who are married to one another, operated Accion 1 Auto Sales, Inc., an automobile salvage and recycling business in Hialeah.  After purchasing junked and non-functioning cars, the defendants would strip the cars, sell the usable parts and components to businesses in the secondary auto parts market, and then sell the remaining metal as scrap to a local metal recycler.  On some occasions, the defendants would resell whole cars, without stripping them.

The defendants’ fraud scheme revolved around their underreporting of Accion 1’s annual sales revenue on the businesses’ federal income tax returns.  Through this scheme, Raul and Maura Sosa depressed the net profits reported on the businesses’ returns, the income reported on their individual returns, and their federal income tax owed.

From 2004 through 2008, the defendants’ business had sales of over $28.6 million.  However, the defendants reported only approximately 14% of their sales, or $3.9 million, on the businesses’ federal income tax returns during that period.  Evidence introduced at trial included records and witness testimony indicating that the defendants’ spending in 2008, on automobiles, real estate, jewelry, and credit card payments exceeded the total income reported on their joint individual income tax return by at least $900,000. 

The court found that after the defendants learned they were under investigation, they caused the filing false amended tax returns in an attempt to minimize the seriousness of their tax offenses.  Based upon this conduct, Judge Moore enhanced the sentences of both defendants for obstruction of justice.

U.S. Attorney Ferrer stated, “Our tax system depends upon taxpayers honestly meeting their obligations.  When people, like the defendants sentenced in this case, file false tax returns and fail to pay the taxes they owe, they cheat the entire community out of monies to which they are rightfully owed.  Our office will continue to hold tax offenders accountable for their crimes in a court of law.”

IRS-CI Special Agent in Charge Kelly R. Jackson stated, “In this scheme, the defendants underreported their income to avoid paying taxes to the IRS. As we are in the beginning of tax filing season, let me warn others contemplating similar conduct not to be tempted by greed.  We are all responsible to report all of our income and file correct and accurate tax returns.  Today’s sentencing is an important victory for America’s taxpayers who play by the rules and have no tolerance for those who shun their tax responsibilities.”

Mr. Ferrer commended the investigative efforts of IRS-CI.  The case was prosecuted by Assistant United States Attorneys Michael Davis and John Byrne.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.