This week, it was announced that Wagdy A. Guirguis was sentenced to five years in prison. Guirguis was the owner of several engineering businesses. A jury convinced him of conspiracy to defraud the United States along with co-conspirator Michael Higa on November 20, 2018.
Guirguis was also convicted of three counts of filing false corporate income tax returns, three counts of tax evasion, one count of corruptly endeavoring to obstruct and impede the IRS, one count of witness tampering, and one count of failure to file a corporate income tax return.
The convictions are linked to a scheme in which Guirguis carried out to divert funds from his businesses for his own personal benefit and to avoid paying taxes and IRS penalties. Evidence presented at trial showed that Guirguis operated several engineering businesses.
Higa was a CPA who served as the controller of these businesses. The IRS determined that Guirguis’ businesses owed more than $800,000 in taxes and assessed an $812,000 penalty. Guirguis and Higa attempted to prevent the IRS from acquiring their assets and income.
Michael Higa is scheduled to be sentenced on July 1. Guirguis has been sentenced to five years in prison. Additional details have been made available here.