LOUISVILLE, Ky. (WDRB) -- A Louisville man was sentenced Friday to one year in prison for not reporting nearly $1 million on his tax returns and defrauding Kentucky Medicaid out of over $200,000.
According to federal prosecutors, Hatem Kaisi admitted to not reporting $961,592 on his taxes from his automobile business between 2012 and 2014. He also admitted to investigators that he owed over $200,000 on taxes for the years 2001 through 2014.
“The defendant failed to report almost $1 million of income on his tax returns,” said Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Today’s sentence is an important reminder that there are consequences, including jail time, for intentionally filing false tax returns.”
Kaisi also admitted to investigators that he hid his actual income from the Kentucky Cabinet for Health and Family Services, who administers Medicaid in the state.
Prosecutors say that between the years 2008 and 2014, he concealed over $200,000 in income each year to fraudulently qualify his family for Medicaid benefits.
"Kaisi’s family members would not have otherwise qualified for Medicaid benefits but for his intentional concealment of income," Michael A. Bennett, Acting United States Attorney for the Western District of Kentucky said in a news release.
"By filing false income tax returns and abusing a federally-funded program such as Medicaid, this defendant ultimately defrauded hard-working American taxpayers," said FBI Louisville Special Agent in Charge Robert Brown. "As this sentence is handed down during this year’s tax season, know that this type of exploitation will not be tolerated."
In court, Kaisi agreed to pay full restitution, $209,910.80, to the IRS. Over $200,000 that the United States already seized from his bank accounts as part of the healthcare fraud will be put toward the restitution.
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