ROCHESTER — An auto dealer allegedly underreported thousands of dollars in sales tax on hundreds of car sales over the past three years.
Rochester auto dealer accused of scamming state out of thousands in sales tax
Safaa Al Janabi, owner of Rochester Auto Mall, allegedly underreported sales tax on hundreds of car sales over the past three years.
October 14, 2022 at 8:46PM
Safaa Fadhil Zamil Al Janabi, 41, was charged this week with 10 felony counts of failing to remit motor vehicle taxes collected from buyers.
Al Janabi, who owns and operates the Rochester Auto Mall near downtown Rochester, said Friday morning he hasn't been notified by the courts and is consulting a lawyer. He said he believes the charges stem from paperwork mistakes.
"I'm 100% sure there is a clarification and we're going to work together with the court to clarify all that," Al Janabi said.
The Rochester Auto Mall opened at the end of 2018.
The Minnesota State Patrol began investigating the business after a crash near Grand Rapids in February 2021 where one of the drivers involved said she bought her BMW from Al Janabi but never received the title.
Investigators searched Rochester Auto Mall in December 2021. Court records say officers allegedly found records of hundreds of car sales where Al Janabi reported a reduced sale price or a higher trade-in price than what actually took place, thereby lowering the reported sales tax.
In one instance, Al-Janabi allegedly sold a 2017 Ford Edge for $20,000 in November 2021 and collected $1,300 in sales tax. He later reported the car sold for $9,500 with only $617.50 collected in tax — a $682.50 difference, according to the complaint.
In a sale involving a 2010 Mercury Mariner, Al Janabi is accused of collecting $419.25 in sales tax and only reporting $149.50.
Al Janabi's first court appearance is scheduled for Nov. 23.
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