Dorchester Fried Chicken Restaurant Owners Indicted On Fraud

BOSTON — A federal grand jury indicted the owners of Dorchester's New York Fried Chicken and Pizza with conspiracy to defraud the US, according to the U.S. Attorney General's office.

The indictment charges Muhamad Siyab Khan and Khurshed Jehan Badshah, both of Dorchester, and Ayaz Ali Shah of Dedham, with conspiring to defraud the United States by impeding the lawful functions of the Internal Revenue Service. Shah and Badshah also are each charged with two counts of willfully filing their own false individual income tax returns for tax years 2012 and 2013. Khan is charged with two counts of aiding and assisting in the preparation and presentation of his own false and fraudulent tax returns for tax years 2012 and 2013.

If convicted, Shah, Khan, and Badshah face a sentence of five years in prison on the conspiracy charge and a maximum sentence of three years in prison on each count of willfully filing a false tax return or aiding and assisting in the preparation and presentation of false and fraudulent tax returns. The defendants also face a period of supervised release, restitution and monetary penalties.

According to the indictment between 2009 and 2014, the three owners of the carry-out restaurant “New York Fried Chicken and Pizza” in Dorchester agreed to under-report the business’s gross receipts, cost of goods sold, and net profit and to report these false amounts on Shah’s 2012 and 2013 individual income tax return, concealing the business’s true partnership nature from the IRS.

Shah, Khan, and Badshah each owned 20 percent of the business while the unindicted co-conspirator owned the other 40 percent, according to officials.

Patch Reporter Jenna Fisher can be reached at Jenna.Fisher@patch.com or by calling 617-942-0474. Follow her on Twitter and Instagram (@ReporterJenna).