Eddie Hasan, President of MOKAN, Pleads Guilty to Filing False Tax Returns

St. Louis, MO: Eddie Hasan pled guilty to filing false tax returns involving monies he received for consulting with minority owned businesses and monitoring minority participation in construction contracts in the City of St. Louis, United States Attorney Catherine L. Hanaway announced today.

“With his plea, Mr. Hasan admitted that he failed to report income from MOKAN and other sources of approximately $470,144 for the taxable years 2001 through 2005, leaving tax due of approximately $105,996,” said Hanaway. 

Eddie L. Hasan operated MOKAN CCAC. In general, Hasan and MOKAN received funds and moneys for consulting with minority owned businesses, operating a minority business training facility and monitoring minority participation in construction contracts in the City of St. Louis, including construction contracts entered into by the St. Louis Public School District.  Regarding monitoring of the school district's construction contracts, Hasan established a bank account at Gateway Bank in the name of MOKAN Public Schools, separate from MOKAN's ordinary operating accounts, in order that the funds and moneys paid by the school district to Hasan through MOKAN would not be reported on his W-2 Wage and Tax Statement.  Hasan also jointly owned and operated MOKAN/ADECS, a separate entity which was also paid to monitor minority participation in construction contracts in the City of St. Louis.  Hasan received moneys and funds as "management fees" for managing rental properties in St. Louis.  Finally, during the pertinent tax years, Hasan received funds and moneys from several other sources. 
           
Hasan knew that moneys and funds he received from his employment with MOKAN and from other sources were reportable as taxable income.  Nonetheless, for the taxable years 2001, 2002 and 2003, Hasan filed individual income tax returns (Forms 1040) that falsified his true income, primarily his true income from MOKAN.  For the taxable year 2001, his return falsely reported adjusted gross income of $48,494; for 2002, adjusted gross income of $80,330; for 2003, $109,474.  For both the taxable years 2004 and 2005, Hasan did not file a income tax return even though he earned income during those years from MOKAN and other sources.

“The FBI will continue to vigorously investigate any fraud related to government contracts, and encourages the public to report fraudulent or extortionate activity to the FBI,” said John Gillies, Special Agent in Charge, FBI-St. Louis.

“The majority of American taxpayers file timely, accurate tax returns.  Part of our mission is to assure those honest taxpayers that everyone pays their fair share,” said Timothy Marsh, Acting Special Agent in Charge of IRS-Criminal Investigation.

Eddie Hasan, St. Louis City, pled guilty to one felony count of filing a false tax return.  He appeared before United States District Judge E. Richard Webber.

Hasan now faces a maximum penalty of three years in prison and/or fines up to $100,000, when he is sentenced on October 15, 2008.

Hanaway commended the work performed on the case by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, the Postal Inspection Service, HUD Inspector General, and Assistant United States Attorney Hal Goldsmith, who is handling the case for the U.S. Attorney’s Office.

 

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