CHICAGO — A south suburban accountant has pleaded guilty to a federal tax offense in connection with a scheme that resulted in a federal and state tax loss of more than $3.4 million.
The U.S. Attorney’s Office of the Northern District of Illinois announced Monday that 56-year-old Imran Mahmood, a South Barrington resident, pleaded guilty on Thursday to tax evasion after he willfully evaded $3,468,523 in federal and state income taxes.
According to federal prosecutors, Mahmood, who was a certified public accountant who provided services for a not-for-profit organization and a related company, obtained around $9,084,984 from the two entities between 2011 and 2014. The majority of the money came from the not-for-profit organization’s payroll accounts.
Prosecutors said after Mahmood obtained the funds, he deposited the money with an entity that he controlled, later using the deposited funds to make personal purchases.
In an attempt to conceal the scheme, Mahmood mischaracterized payments in the records of the two entities from which he obtained the money, prosecutors said.
According to prosecutors, Mahmood was later found to have filed false tax returns between 2011 and 2014 after he failed to disclose all of the funds he received and his ownership of the entity into which he deposited the funds, after hiring a tax professional to assist him in filing his income tax returns.
As part of his plea agreement, Mahmood agreed to pay $3,468,523 in restitution to the U.S. Treasury and The Illinois Department of Revenue.
If convicted, Mahmood could face a maximum sentence of five years in federal prison.