Moshe Gabay, a 54-year-old Baltimore pharmacy owner, has pleaded guilty to filing false tax returns with the Internal Revenue Service (IRS). According to the plea, Gabay underreported his income by over $3.5 million, resulting in more than $1 million in unpaid taxes. The announcement was made by Kelly O. Hayes, U.S. Attorney for the District of Maryland, in conjunction with Kareem Carter, Special Agent in Charge at the IRS-CI Washington D.C. Field Office.
Gabay admitted in his plea that he owned and operated SINU-RX Pharmacy Inc. in Baltimore and handled its finances. He directed interactions and provided information to SINU-RX's bookkeepers and tax preparers.
For tax years 2017 through 2022, Gabay's tax filings included both Form 1120S for the S Corporation and Form 1040 for individual income. Gabay was found to have knowingly given false information, categorizing personal funds as business expenses. As part of his plea, Gabay has agreed to pay over $1 million in restitution.
Gabay could face a maximum of three years in federal prison for the charges. However, sentences are generally less than the maximum and determined by a federal district court judge who considers various guidelines and factors.
U.S. Attorney Hayes recognized the IRS-CI's role in the investigation and extended appreciation to Special Assistant U.S. Attorney Jared W. Murphy and Assistant U.S. Attorney Matthew P. Phelps for prosecuting the case. Additional information is available at the Maryland U.S. Attorney's Office website.
