Moshe Gabay, a Baltimore pharmacy owner, has been sentenced to one year and one day in federal prison for filing false tax returns. The sentence was handed down by Judge James K. Bredar, who also ordered Gabay to serve one year of supervised release and pay a $100 special assessment. Gabay must pay the Internal Revenue Service (IRS) $1,039,585 in restitution after underreporting his income by more than $3.5 million over several years.
According to the U.S. Attorney’s Office for the District of Maryland, Gabay owned and operated SINU-RX Pharmacy Inc., where he controlled finances and managed information provided to bookkeepers and tax preparers. From 2017 through 2022, Gabay filed both corporate and individual tax returns that misrepresented business expenses. He directed that funds taken from the pharmacy be listed as costs of goods sold when they were actually diverted for personal use.
In his guilty plea, Gabay admitted responsibility for providing false information that led to underreported income on tax filings with the IRS. As part of his plea agreement, he agreed to pay more than $1 million in restitution.
"U.S. Attorney Hayes commended the IRS-CI for its work in the investigation. Ms. Hayes also thanked Special Assistant U.S. Attorney Jared W. Murphy and Assistant U.S. Attorney Matthew P. Phelps, who prosecuted the federal case, and Paralegal Specialist Joanna B.N. Huber for her valuable assistance."
The announcement was made by Kelly O. Hayes, U.S. Attorney for the District of Maryland, alongside Special Agent in Charge Kareem Carter from IRS Criminal Investigation’s Washington D.C. Field Office.
More details about this case and resources from the Maryland U.S. Attorney’s Office can be found at https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
