An Orem tax return preparation business is facing federal charges for conspiracy to defraud the United States.
According to a press release by the U.S. Department of Justice Office of Public Affairs, a federal grand jury in Salt Lake City returned an indictment charging Sergio Sosa and his adult children, Alissa and David Sosa, for conspiracy to defraud the United States.
The trio also faces one count each of corruptly endeavoring to obstruct the administration of internal revenue laws. Additionally, Sergio Sosa is being charged with one count of tax evasion.
Sergio Sosa owned and operated Sergio Central Latino in Orem for almost 20 years, allowing Alissa and David Sosa to work for him. According to the indictment, Sergio Sosa allegedly did not file his personal tax returns in a timely manner from 2003 to 2017, and after multiple audits, the Internal Revenue Service discovered that he owed more than $750,000 in unpaid taxes.
Sergio Sosa and his children allegedly attempted to obstruct the IRS in its collection efforts of the outstanding taxes by hiding his personal assets, residential properties and titling his business under the names of his children.
When the IRS suspended Sergio Central Latino’s ability to electronically file tax returns on behalf of clients due to Sergio Sosa’s unpaid taxes, David Sosa allegedly changed the business’s name and obtained electronic filing authorization in a third party’s name, according to the indictment.
Furthermore, officials allege that Alissa Sosa falsely represented to the IRS that she owned her father’s residence. According to indictment documents, Alissa Sosa also allegedly withdrew $37,000 from an account that she knew had been levied by the IRS.
As of last year, Sergio Sosa allegedly owed more than $1.1 million in taxes, penalties and interest.
Special agents of IRS-Criminal Investigation conducted the investigation, and assistant U.S. Attorney Ruth Hackford-Peer and trial attorney Erin Mellen of the tax division are prosecuting the case.
If convicted, the Sosas each face a statutory maximum sentence of five years in prison for the conspiracy charge and three additional years for corruptly endeavoring to obstruct the administration of the internal revenue laws. Sergio Sosa faces another five years in prison for tax evasion. The three suspects also face a period of supervised release, restitution and monetary penalties.