July 13, 2022

The Minnesota Department of Revenue announced that the Anoka County Attorney’s Office recently charged Fady Bshara Daw, of North Oaks, with three felony counts of filing false or fraudulent tax returns.

The complaint states that Mr. Daw is a registered owner of Cedars, Inc., a tobacco wholesaler located in Fridley. According to the complaint, the business sold tobacco products without the accompanying invoices to retail establishments, allowing the retail establishments a higher profit margin by selling the untaxed products. The complaint alleges that for multiple periods from January 2019 through April 2021, Mr. Daw knowingly filed Cedars, Inc.’s tobacco tax returns without all the required invoices for the purchases of the tobacco products. By not submitting all the required invoices when filing, Mr. Daw allegedly avoided paying over $1.3 million in tax during that period.

Each felony charge carries a maximum penalty of one year plus one day in jail. Defendants are presumed to be innocent unless and until proven guilty.

Although most taxpayers comply with tax laws voluntarily, the Minnesota Department of Revenue takes enforcement action against noncompliant taxpayers to ensure that tax laws are administered fairly.