False FBARs for German and Israeli Bank Accounts Lead to Criminal Indictment

On July 20, 2017, the US Department of Justice announced that Mr. Teymour Khoubian was indicted by a federal grand jury in the Central District of California for corruptly endeavoring to impede the internal revenue laws, filing false tax returns and filing false FBARs regarding his German and Israeli bank accounts and making false statements to a federal agent.

It is important to remember that the charges contained in the indictment are only allegations. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Facts of the Case According to the Indictment

According to the indictment, Mr. Khoubian filed false individual tax returns for tax years 2005 through 2010, which failed to disclose his financial interest in multiple Israeli and German bank accounts as well as the interest income from those accounts. To make matters worse, the indictment alleges that he also falsely claimed refundable tax credits to which he was not entitled, including the Earned Income Tax Credit (a tax credit mostly for low-income working individuals). In 2008, Mr. Khoubian is alleged to have held approximately $20 million in assets in his undisclosed German and Israeli bank accounts.

In 2011, Mr. Khoubian allegedly made another step on the road that eventually lead to the criminal indictment – he allegedly filed a false 2011 tax return that underreported the interest income he earned from his Israeli accounts. He continued to fail to disclose that he held an account in Germany.

The indictment further changes that Mr. Khoubian also filed false 2012 and 2013 Reports of Foreign Bank and Financial Accounts (FBARs) that concealed his German bank account. In addition to filing false tax returns and FBARs, Mr. Khoubian allegedly provided his German bank with a copy of his Iranian passport and a residential address located in Israel to prevent the bank from disclosing the account to the IRS. Furthermore, he allegedly sent a letter to Bank Leumi falsely claiming he was living in Iran when, in fact, he resided in Beverly Hills, California.

Finally, Mr. Khoubian is also charged with making false statements to an IRS Criminal Investigation (CI) special agent denying that he owned an account in Germany between 2005 and 2010, stating that the German account was closed, when it was in fact still open, and stating that the funds had been transferred to the United States, when Mr. Khoubian had allegedly transferred over $600,000 from his German account to his accounts in Israel.

Potential Penalties for Filing False Tax Returns, Impeding the Enforcement of Internal Laws, and Filing False FBARs for German and Israeli Bank Accounts

If convicted, Mr. Khoubian faces a statutory maximum sentence of three years in prison for corruptly endeavoring to impede the internal revenue laws and each count of filing a false return and five years in prison for each count of filing a false FBAR and making a false statement. He also faces a period of supervised release, restitution and monetary penalties.

Contact Sherayzen Law Office for Professional Help if You Have Undisclosed Foreign Accounts, Including German and Israeli Bank Accounts

If you have undisclosed foreign financial accounts, including German and Israeli Bank accounts, you should contact Sherayzen Law Office as soon as possible to explore your voluntary disclosure options. Sherayzen Law Office has helped hundreds of US taxpayers around the world to bring their tax affairs into full compliance with US tax laws, while reducing and, in some cases, even eliminating their penalties. We Can Help You!

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