Edison Man Charged With Tax Evasion & Filing False Tax Returns

EDISON, NJ — A man from Edison was charged with tax evasion and filing false tax returns, Acting U.S. Attorney Rachael A. Honig and Acting Deputy Assistant Attorney General Stuart M. Goldberg announced Wednesday.

Gabriel M. Ferrari, owner of Buses and Trucks Inc. (B&T) in Linden, was indicted by a federal grand jury on three counts of tax evasion and seven counts of filing false personal and corporate tax returns, said the news release.

He will have his arraignment and initial appearance at a later date.

According to the indictment, from 2011 through 2014, Ferrari used gross receipts of B&T to pay personal expenses, including gambling on horse races, and then did not disclose the diverted receipts to his return preparer or the IRS.

To hide his income, he filed false business and personal tax returns with the IRS, said the news release.

Each count of tax evasion carries a maximum potential penalty of five years in prison and a maximum fine of $250,000. Each count of filing a false tax return carries a maximum potential penalty of three years in prison and a maximum fine of $250,000, Honig said.

Honig and Goldberg credited special agents of IRS-Criminal Investigation Division, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to the indictment.

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