A Northville man is facing more than a dozen tax-related federal charges for failing to accurately report income and collect various taxes for a Detroit-based company he operated. Ali Kassem Kain, of Northville, who operated a transportation business that arranged for automobiles to be shipped abroad, appeared in court Wednesday before U.S. Magistrate Judge Elizabeth Stafford, of the U.S. District Court for the Eastern District of Michigan, on a grand jury indictment that charged him with 24 counts, including willfully filing false corporate and individual income tax returns and failing to collect and pay various payroll taxes.
According to the indictment, which was entered April 3 and unsealed on June 4, from 2017 to 2020, Kain underreported the business’ gross receipts by several million dollars each year on the business’ corporate returns. For those same years, he also underreported the amount of income he earned from his business on his personal returns.
In addition, Kain was allegedly responsible for withholding Social Security, Medicare and federal income taxes from his employees’ wages and paying those amounts over to the IRS. Instead, Kain allegedly did not collect all those taxes for his company’s employees and did not pay over the full amount due to the IRS. In total, Kain is alleged to have caused a tax loss to the IRS of nearly $5 million.
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Kain was charged with 16 counts of failing to collect and pay over employment taxes and eight counts of filing false tax returns. If convicted, Kain faces a maximum penalty of five years in prison for each employment tax count and a maximum penalty of three years in prison for each count of filing a false tax return. Kain operated Specialized Overseas Shipping, Overseas Shipping Transportation and Overseas Shipping Reality, all based on Tireman Avenue in Detroit. The court set a trial date of Aug. 13 in the case.
