U.S. Attorney Issues Stolen Goods and Tax Charges Against Owners of Grocery Wholesale Company
|U.S. Attorney’s Office October 11, 2011|
United States Attorney James L. Santelle announced today that he has issued a four-count information charging the owners of Kaloti Wholesale, Inc. with multiple federal criminal charges.
The information, filed contemporaneous with signed plea agreements from each defendant, charges company president Rassem Kaloti (born March 8, 1961) of Brookfield, Wisconsin, with conspiracy to defraud the United States through schemes designed to conceal his true taxable income from 1998 through October 2007, and with filing a false 1040 individual tax return for the 2005 tax year. The information also charges his brother and company vice president, Ishaq Kaloti (born January 1, 1966) of Brookfield, Wisconsin, with one count of knowingly purchasing and receiving stolen infant formula in May 2005, one count of conspiracy to defraud the United States through schemes designed to conceal his true taxable income from 1998 through October 2007, and with filing a false 1040 individual tax return for the 2005 tax year.
The maximum possible penalty on the stolen infant formula charge is 10 years’ imprisonment and a $250,000 fine; on the conspiracy charge, five years’ imprisonment and a $250,000 fine; and on the 2005 tax charges, three years’ imprisonment and a $100,000 fine.
Kaloti Wholesale, Inc. is a Wisconsin corporation in the business of dry-grocery wholesaling to customers throughout the United States. Its company headquarters and chief warehouse is located in New Berlin, Wisconsin. On February 14, 2007, agents from the Federal Bureau of Investigation and the Internal Revenue Service searched the Kaloti Warehouse in New Berlin, Wisconsin, pursuant to a search warrant and seized, among other things, more than 81,000 cans of suspected stolen formula found there. As part of the plea agreement, the Kalotis have agreed to the forfeiture of this infant formula to the United States.
According to United States Attorney James L. Santelle, “Today’s charges are the result of a long and diligent investigation by members of the Internal Revenue Service, the Federal Bureau of Investigation, and the U.S. Attorney’s Office. These charges reflect our continued commitment to investigate and prosecute criminal conduct occurring at the highest levels of business, no matter how complex the case, and to bring to justice wrong-doers regardless of their stature, office, or position.” United States Attorney Santelle specifically commended the participating agencies for their hard work on the joint investigation, which was conducted by special agents from the Federal Bureau of Investigation and the Criminal Investigation Division of the Internal Revenue Service.
The case is being prosecuted by Assistant United States Attorneys Scott J. Campbell and Joseph R. Wall. For additional information, contact Public Information Officer Dean Puschnig or Elizabeth Makowski, (414) 297-1700.