Moshe Gabay, a 55-year-old pharmacy owner from Baltimore, Maryland, has been sentenced to one year and one day in federal prison for filing false tax returns. U.S. District Judge James K. Bredar also ordered Gabay to serve one year of supervised release and pay a $100 special assessment. In addition, Gabay must pay $1,039,585 in restitution to the Internal Revenue Service (IRS).
According to court documents and his guilty plea, Gabay owned and operated SINU-RX Pharmacy Inc., located in Baltimore. He managed the pharmacy’s finances and was responsible for providing information to bookkeepers and tax preparers.
From 2017 through 2022, Gabay’s tax returns were filed on his behalf. These included both corporate and individual income tax forms. Prosecutors said that before the returns were filed, Gabay knowingly gave false information to his bookkeepers and preparers by misclassifying funds he took from the business as expenses for cost of goods sold when they were actually diverted for personal use. This led him to underreport more than $3.5 million in income, resulting in over $1 million in unpaid taxes.
Gabay agreed as part of his guilty plea to pay restitution exceeding $1 million.
“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.”
For additional details about the Maryland U.S. Attorney’s Office or community resources, visit https://www.justice.gov/usao-md or https://www.justice.gov/usao-md/community-outreach.
