BALTIMORE, MD—A Baltimore County pharmacy owner pleaded guilty to filing false tax returns after underreporting his income by more than $3.5 million, officials say. This resulted in more than $1 million in unpaid taxes.
Moshe Gabay, 54, of Baltimore, admitted to underreporting his income from his pharmacy, SINU-RX Pharmacy Inc., located in Pikesville. Kelly O. Hayes, U.S. Attorney for Maryland, and Kareem Carter, Special Agent in Charge of IRS-CI Washington D.C., announced the guilty plea. Field Office.
Gabay, who controlled the pharmacy’s finances, intentionally provided false information to his bookkeepers and tax preparers, according to the Department of Justice.
From tax years 2017 through 2022, Gabay’s tax returns showed that he underreported his income on his Form 1120S, U.S. Income Tax Return for an S Corporation, for SINU-RX and his Form 1040, U.S. Individual Income Tax Return.
The funds were listed as business expenses, specifically for the cost of goods sold, but Gabay had diverted these funds to himself for his personal use, officials said.
Gabay will pay restitution of over $1 million.
He faces up to three years in federal prison for filing a false tax return.
This article was written with the assistance of AI and reviewed by a human editor.
Photo by Sora Shimazaki from Pexels
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