MYNORTHWEST NEWS

Owner of Auburn bikini barista stands sentenced to prison

Oct 10, 2024, 11:19 AM

Photo: Bikini barista....

Bikini barista. (File Photo: Ted S. Warren, AP)

(File Photo: Ted S. Warren, AP)

The owner of bikini barista coffee stands in Auburn was sentenced to 30 days in prison, a $5,000 fine and 100 hours of community service for tax fraud this week. U.S. Attorney Tessa Gorman announced Rajesh Mathew, 45, pleaded guilty to filing a false tax return and underreporting income over several years.

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.

Related story: Owner of Seattle bikini barista coffee stands in hot water with IRS

During the sentencing, U.S. District Judge Tana Lin emphasized the gravity of tax fraud, stating, “There is no excuse for hiding half a million dollars in a life of privilege, except greed.”

Lin dismissed the defense’s request for home confinement, asserting it would not adequately reflect the seriousness of the crime.

This sentencing marks the first in a series of tax fraud cases involving a family that owns multiple coffee stands. Mathew’s brother-in-law, Assad Baragzai, 47, also from Auburn, admitted in August 2024 to failing to report up to $6 million in income between 2016 and 2020. Baragzai faces up to three years in prison, with his sentencing scheduled for November 18, 2024.

My Northwest News: Everett to vote on confirming dress codes for bikini baristas after settlement

“Most Americans pay their taxes voluntarily and on time,” Assistant U.S. Attorney Michael Dion said, advocating for a four-month prison sentence for Mathew. “The root of the tax evasion problem lies with a small minority who refuse to pay what they owe. Raj Mathew is one of those people.”

The IRS Criminal Investigation group is examining the case.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here. 

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