Edison Man Sentenced To 1 Year In Prison For Filing Fake Corporate Tax Returns

EDISON, NJ — An Edison resident was sentenced to one year and one day in prison for filing a false tax return on behalf of his company, U.S. Attorney Philip R. Sellinger, Acting Assistant Attorney General David A. Hubbert, and Acting Deputy Assistant Attorney General Stuart M. Goldberg said Thursday.

Gabriel M. Ferrari previously pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to count four of an indictment that charged him with subscribing to a false tax return. Ferrari was sentenced Ferrari on Wednesday, in Newark federal court.

According to documents, Ferrari owned Buses and Trucks Inc., an automotive repair business in Linden. In January 2015, he subscribed to and caused to be filed a corporate tax return for Buses and Trucks for tax year 2011.

Authorities said Ferrari knew at the time, that return was false in that it understated Buses and Trucks’ gross receipts for tax year 2011. In fact, Ferrari had diverted Buses and Trucks’ gross receipts to pay personal expenses, including gambling on horse races, and did not report those diverted receipts on the Buses and Trucks 2011 corporate tax return, according to court documents.

In addition to the prison term, Ferrari was also sentenced to one year of supervised release and ordered to pay restitution of $87,926.

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