Exclusive Motor Sports in Central Valley made money, but the father and son who ran the Orange County used car dealership allegedly concealed millions of dollars in revenue and lied to lenders about their finances.
Mehdi Moslem, 70, and his son, Saaed Moslem, 35, were arraigned Monday in White Plains federal court on conspiracy charges to commit tax fraud and bank fraud. Saaed Moslem was also accused of making false statements to lenders and concealing assets in a bankruptcy case.
From 2009 to 2016 they allegedly underreported their personal incomes to the IRS, with the help of a Rockland County tax preparer who was not identified in court documents.
They directed their accountant to lower Exclusive Motor Sport’s revenues and year-end inventories, thus increasing the costs of goods sold and decreasing net profits, according to the indictment issued by U.S. Attorney Geoffrey S. Berman. The fraudulent figures were then passed through to their tax returns, reducing their personal taxes.
They were also accused of submitting inflated net worth statements and fabricated tax returns on loan applications. Saaed Moslem was charged with concealing assets when he filed for bankruptcy in 2015.
They borrowed millions of dollars from financial institutions Bank of America, Hudson Valley Federal Credit Union, Riverside Bank, Melrose Credit Union, Salisbury Bank and Trust Co. and Walden Savings Bank.
Riverside Bank, for instance, loaned $1,162,500 to Exclusive Motor Sports in 2011, secured by their personal guarantees. The loan defaulted in 2017, with $956,636 still owed.
Saaed Moslem allegedly overstated his assets and understated his liabilities to get a loan from Melrose Credit Union in 2013 for Quality Homes of Hudson Valley LLC. In his bankruptcy case, he failed to disclose his ownership of Quality Homes or his interests in three properties in Cornwall-on-Hudson.
U.S. Magistrate Judge Lisa M. Smith released both men from custody on $300,000 personal recognizance bonds.
Assistant U.S. Attorney Daniel Loss is in charge of the prosecution.
Saaed Moslem’s attorney, James R. DeVita, was unavailable for comment. Mehdi Moslem’s attorney, Jason I. Ser, did not immediately respond to a request for comment.