Ladybug Coffee Stand Co-owner Sentenced For Tax Evasion – CoffeeTalk

The U.S. District Court has sentenced Rajesh Mathew, 45, of Auburn, to 30 days in prison, a $5,000 fine, and 100 hours of community service for tax fraud. Mathew pleaded guilty in March 2024 to making and subscribing a false tax return. His brother-in-law, Assad Baragzai, pleaded guilty in August to creating and subscribing a false tax return and not reporting up to $6 million in income between 2016 and 2020. Mathew and Baragzai are the owners of Ladybug Espresso, a bikini barista coffee stand chain with locations in Seattle, Renton, Kent, Auburn, and more. The Internal Revenue Service Criminal Investigation department investigated the case, and the sentencing is the first in a series of cases. Mathew has completed paying restitution to the Internal Revenue Service at the time of his sentencing, and he may face additional civil penalties, fines, and interest for the tax loss. Baragzai is scheduled to be sentenced in a hearing scheduled for November 18, where he faces up to three years in prison.

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