Peoria Gas Station Owner Indicted on Tax Fraud

Springfield…Adnan Rashid, 34, of New Jersey was charged with a 20-count indictment by a federal grand jury in Peoria for tax evasion, filing false tax returns, and mail fraud.  Rashid was the sole owner of two Peoria area Marathon gas stations and partial owner of two additional Peoria Marathon stations.  The federal charges stem from an investigation conducted by the Illinois Department of Revenue, Bureau of Criminal Investigations and the Internal Revenue Service. 

The indictment alleges that Rashid submitted false sales and use tax returns to the State of Illinois from January 2007 to January 2013.  Rashid allegedly defrauded the State of Illinois of $1.2 million in tax revenue by failing to report approximately $16 million in sales.  Rashid is additionally charged with tax evasion for personal taxes for the 2009 and 2010 tax years, and with the filing of false federal corporation income tax returns for three of the gas stations for the 2009 and 2010 tax years.

“We take allegations of tax fraud very seriously.  Not only does tax fraud deprive the State of critically needed revenues but it also puts businesses that play by the rules at an unfair disadvantage,” Connie Beard, Illinois Department of Revenue Director said.  “I thank our Criminal Investigation Division for their hard work and cooperation with the federal government in bringing forth this indictment.”

If convicted, the statutory maximum penalty for mail fraud (12 counts) is 20 years in prison. For the false corporate returns (six counts), the statutory maximum penalty is three years in prison. The statutory maximum penalty for tax evasion (two counts) is five years. Each of the 20 counts carries a fine of up to $250,000.
 
Rashid’s case is being prosecuted by Supervisory Assistant U.S. Attorney Darilynn J. Knauss and Illinois Assistant Attorney General Eugene Bian.