An Edison man was charged with tax evasion and filing false tax returns.
Gabriel M. Ferrari was indicted by a federal grand jury on March 17 on three counts of tax evasion and seven counts of filing false personal and corporate tax returns.
He will have his arraignment and initial appearance at a later date, according to information provided by Acting U.S. Attorney Rachael A. Honig and Acting Deputy Assistant Attorney General Stuart M. Goldberg.
According to the indictment, from 2011 through 2014, Ferrari, owner of Buses and Trucks Inc. (B&T) in Linden, allegedly 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, Ferrari allegedly filed false business and personal tax returns with the IRS, according to the indictment.
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.
