This week, it was announced that a Beverly Hills, California man had pleaded guilty to filing false tax returns which did not report accounts held in Israel and Germany. The plea agreement and related court documents show that Teymour Khoubian pleaded guilty to filing false tax returns for the years 2009 and 2010. Those returns failed to report foreign financial accounts in Germany and Israel. The filings also failed to report income earned on those accounts.
Between 2005 and 2012, the defendant jointly owned several accounts at Bank Leumi in Israel. The accounts were jointly owned with his mother and they held between $15 and $20 million. Since at least 2005, the defendant owned a foreign account at Commerzbank AG in Germany. Khoubian prepared false tax returns for the years 2005 through 2011. These filings did not fully disclose the foreign accounts and they did not report all the interest income earned on those accounts.
The defendant’s Bank Leumi accounts generated more than $4 million in interest income between 2005 and 2010. None of that money was reported to the IRS. The total tax loss associated with the defendant’s Bank Leumi accounts is roughly $1.2 million. Khoubian will face a maximum of three years in prison for each tax count to which he had pleaded guilty. Further details are available here.