Dedham Man Pleads Guilty To Defrauding IRS With His Restaurant

DEDHAM, MA — A Dedham man, who owned a restaurant in Dorchester, pleaded guilty Friday in federal court in Boston to defrauding the IRS out of five years worth of taxes, federal prosecutors said. Ayaz Ali Shah co-owned "New York Fried Chicken and Pizza" with his business partners, Muhamad Siuyab Khan and Khurshed Jehan Badshah.

According to court documents, Shah and his co-defendants, from 2009 through 2014, under-reported the restaurants gross receipts, costs of goods sold, and net profit. The false amounts were then reported on Shah's individual tax returns in 2012 and 2013, according to federal prosecutors.

Shah's sentencing is scheduled for Sept. 19, and faces a potential five-year prison sentence. Khan and Badshah's indictments are pending, the U.S. Justice Department said.