Owner of Check-Cashing Operation Pleads to Tax Charge

PHOENIX (LAWFUEL) – Jamil Hanna Abdallah, 48, a U.S. citizen residing in Chandler, Ariz., pleaded guilty yesterday in federal district court in Phoenix. Abdallah pleaded guilty to an Information that charged him with Willfully Making and Subscribing a Materially False Tax Return.

In his plea agreement, Abdallah admitted to cashing checks out of his Tempe Laundromat business, Supermat 16, and to charging service fees to his customers. In 2004 alone he cashed over $30,000,000 in payroll and other third party checks. He further admitted to under reporting income from the check-cashing service fees over the six years between 1999 and 2004, and to underpaying his federal income taxes by more than $200,000 over that span of time.

Sentencing is set before Judge Susan R. Bolton on November 3, 2008. A conviction for Willfully Making and Subscribing a Materially False Tax Return carries a maximum penalty of three years in federal prison, a $250,000 fine or both. In determining an actual sentence, Judge Bolton will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. Judge Bolton, however, is not bound by those guidelines in determining a sentence.

The investigation in this case was conducted by the Internal Revenue Service, Criminal Investigation Division. The prosecution is being handled by Gary M. Restaino, Assistant U.S. Attorney, District of Arizona, Phoenix.


RELEASE NUMBER: 2008-218(Abdallah)

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