AUBURN, Wash. — The owner of bikini barista coffee stands in Auburn was sentenced to 30 days in prison, must pay a $5,000 fine and complete 100 hours of community service for tax fraud this week.
According to U.S. Attorney Tessa Gorman, 45-year-old Rajesh Mathew pleaded guilty to filing a false tax return and underreporting his income over a period of several years.
“There is no excuse for hiding half a million dollars in a life of privilege, except greed,” U.S. District Judge Tana Lin said.
The judge rejected Matthew’s request for home confinement, saying it would not be reflective of the seriousness of the crime and only cause him “an inconvenience.”
Mathew has already paid restitution to the IRS and may face additional civil penalties, fines and interest. Filing a false tax return can result in up to three years in prison and a $250,000 fine or twice the gain or loss from the offense.
His sentencing is the first in a series of tax fraud cases involving a family that owns multiple coffee stands.
According to the U.S. Attorney’s office, Mathew’s brother-in-law, 47-year-old Assad Baragzai admitted in August to failing to report up to $6 million in income between 2016 and 2020. Baragzai faces up to three years in prison. His sentencing is set for November 18.
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