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Fraud

New Jersey Man Pleads Guilty to Conspiring to Commit Tax Fraud

Strategic Insights

— 1 min read

Ali Shahid Butt, a 56-year-old New Jersey resident and owner of multiple fast-food restaurants, has pleaded guilty to conspiring to commit tax fraud. As part of his plea, Butt has agreed to pay over $2.4 million in restitution to the IRS. The conspiracy involved failing to withhold and pay over employment taxes on cash wages for employees, including those who were paid in cash due to being illegal aliens without work authorization. The scheme resulted in a tax loss of over $1.2 million. Butt's co-conspirator, Bahadar "Sam" Durrani, has also pleaded guilty and is scheduled to be sentenced in October.

Key Takeaways:

  • Ali Shahid Butt pleaded guilty to conspiring to commit tax fraud in U.S. District Court, with an agreement to pay over $2.4 million in restitution to the IRS.
  • The conspiracy involved failing to withhold and pay over employment taxes on cash wages for employees at several restaurants, including in Zanesville.
  • A co-conspirator, Bahadar "Sam" Durrani, has also pleaded guilty and is scheduled to be sentenced in October.
  • The scheme resulted in a tax loss of more than $1.2 million.
  • Butt's fast-food restaurants were located in multiple states, with some in the Midwest and Mid-Atlantic region.
  • The investigation involved the U.S. Department of Justice's Southern District of Ohio, the Internal Revenue Service (IRS), and U.S. Immigration and Customs Enforcement (ICE).

Statistics:

  • $2.4 million: The amount of restitution agreed to by Butt as part of his plea.
  • $1.2 million: The tax loss resulting from the conspiracy.
  • 2015-2021: The timeframe during which the conspiracy occurred.
  • 2.4 million: The total amount would be considered approximately $2.4 million in fees to hire and fiduciary costs of a work visa program to employ foreigners.
  • Multiple: The number of fast-food restaurants owned by Butt in multiple states.
  • 56: The age of Ali Shahid Butt.
  • 4: The number of law enforcement agencies involved in the investigation (U.S. Department of Justice's Southern District of Ohio, Internal Revenue Service, U.S. Immigration and Customs Enforcement).

Sources:

  • United States Attorney's Office, Southern District of Ohio

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