SACRAMENTO, Calif. - Omar Kabiljagic, 46, of Sacramento, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to four years and three months in prison for filing fraudulent tax returns, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented during a four-day trial, Kabiljagic submitted a series of fraudulent tax returns to the Internal Revenue Service falsely reporting that in 2008 and 2009, he earned interest from “original issue discount" (OID) bonds. He falsely reported that this interest income had been withheld by various financial institutions, and claimed that this entitled him to hundreds of thousands of dollars in tax refunds. The IRS repeatedly warned Kabiljagic that his filings were frivolous and that he risked criminal charges if he persisted. Nevertheless, on June 25, 2009, Kabiljagic filed two more tax returns that falsely claimed refunds totaling $863,520.
Kabiljagic’s co-defendant, Suvada Mahmutovic, 67, pleaded guilty to filing a false claim using the same scheme. One of Mahmutovic’s claims resulted in a fraudulent refund of more than $263,000, which Kabiljagic helped her cash. On July 6, 2017, Mahmutovic was sentenced to 21 months in prison.
“Despite being warned several times, Mr. Kabiljagic repeatedly and persistently filed false tax returns with IRS," said Michael T. Batdorf, Special Agent in Charge IRS Criminal Investigation. “When his scheme finally worked, he helped his co-defendant open a bank account, carried the cash home in a duffle bag, and wired it overseas through his own bank accounts. Once again this shows the severe nature of fraudulent tax refund schemes perpetrated against the IRS. Today’s sentencing sends a clear message that those involved in these types of schemes will be held accountable for their crimes."
On April 4, 2017, a jury found Kabiljagic guilty of two counts of filing fraudulent tax returns. In sentencing Kabiljagic, Judge Burrell found that Kabiljagic had obstructed justice by testifying falsely at trial.
This case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorneys Matthew G. Morris and Amy Schuller Hitchcock prosecuted the case.
Source: U.S. Department of Justice, Office of the United States Attorneys
