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

MyNorthwest News

Nisqually River Bridge...

MyNorthwest Staff

1 dead, car catches fire after ‘mechanical mishap’ on I-5 north at Nisqually River Bridge

A person was killed due to a "mechanical mishap" on northbound I-5 at the Nisqually River Bridge. A car subsequently caught fire.

10 hours ago

memorial day weekend travel SEA airport...

Michael Strite

SEA airport is shutting down the Spot Saver program

Seattle-Tacoma International Airport (SEA) will end the "SEA Spot Saver" program after Thanksgiving.

11 hours ago

Neil Gehring National Park Service...

Michael Strite

Search continues for missing hiker at Olympic National Park

26-year-old Neil Gehring left the Madison Falls Trailhead at Olympic National Park on Aug. 31. He was reported missing on Sep. 2.

12 hours ago

belltown shooting (3)...

Gee Scott and Ursula Reutin Show

‘People act and say things to get them elected’: Gee urges leaders to face families after Belltown shooting

A 21-year-old man who tried to stop a robbery during a Belltown street takeover was shot three times, then had to walk two blocks begging for help.

13 hours ago

tukwila...

Michael Strite

Tukwila police officers rescue man trapped underneath car

A man was taken to the hospital after he was trapped beneath a car early Thursday morning. Around 4 a.m., Tukwila police responded to a vehicle that went off the road along Interurban Ave. S. Officers found the car with a man pinned underneath. They were able to lift the car and rescue the victim. […]

14 hours ago

bellevue drone expands...

Lexi Herda, KIRO 7 News

Bellevue expands use of drones for city’s first responders

Bellevue is expanding its use of drones for its first responders.

15 hours ago

Owner of Auburn bikini barista stands sentenced to prison