Car Dealership Owner Charged with Underreporting $8 Million in Sales, Filing False Tax Documents

Alameda County prosecutors have charged the owner of a local car dealership after state tax investigators determined he’d misrepresented $8 million in sales, according to court records.

Joseph Nader, 53, was charged last year with five felonies and a dozen misdemeanors, alleging that he committed grand theft by embezzlement and filed false tax returns. At a court hearing earlier this month, Nader formally pleaded not guilty to the charges.

In an email, Nader’s attorney, David Sternfeld, cautioned against believing the authorities’ claims that were outlined in a probable cause statement filed in court.

“Mr. Nader has not admitted any wrongdoing nor has he been found guilty of any wrongdoing,” Sternfeld wrote.

According to the probable cause statement, the charges are the result of a 2018 audit by the California Department of Tax and Fee Administration, which looked at records related to Nader’s business, Greenlight Motors, from 2015 to 2017. The investigation found Nader “unreported sales tax he received from customer’s (sic) for nearly a decade.”

Investigators found $8 million in unreported sales from the two-year period, which amounted to roughly $720,000 in unreported sales tax, according to the probable cause statement.

Nader is next due in court for a preliminary hearing, where a judge will review evidence from the CDTFA investigation and determine whether it is enough to order Nader to stand trial. In the meantime, Nader remains out of custody, court records show.

Source: Fremont car dealership owner charged with underreporting $8 million in sales, filing false tax documents