THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, November 9, 1995 TAG: 9511090354
SECTION: LOCAL PAGE: B4 EDITION: FINAL
SOURCE: BY JOE JACKSON, STAFF WRITER
DATELINE: NORFOLK LENGTH: Short : 45 lines
A Chesapeake physician charged with tax fraud - that included listing a red Ferrari sports car as an ultrasound machine - pleaded guilty in federal court Wednesday to two counts of tax evasion.
Dr. Javaid A. Perwaiz, an obstetrician and gynecologist with two offices in Chesapeake, was found guilty of filing a false personal and corporate tax return, both for 1989. He faces a maximum penalty of six years in federal prison and a $500,000 fine.
A federal grand jury charged Perwaiz in August with six counts of signing and filing false tax returns in 1988 and 1989. The other four charges were dropped Wednesday as part of the plea agreement.
Prosecutors estimated the tax loss to the government at between $50,815 and $70,000, records show.
The IRS investigation of Perwaiz started in late 1992 as the result of a tax audit. Investigators said Perwaiz classified several personal purchases during 1988 and 1989 as business expenses, then listed those claims as deductions on his corporate tax returns.
The personal purchases included Oriental rugs, china, porcelain fixtures, jewelry, furniture, stereo equipment, paintings, clothes, lingerie, shoes, suits, ties and dresses, the indictment said.
According to court records, Perwaiz's false claims included:
The purchase of a red 1989 Ferrari 328 in February 1989 for $89,942. Perwaiz made a $5,000 down payment, then paid the balance with corporate funds. He claimed the $84,942 was for an ultrasound machine and other medical equipment.
The purchase of a 1986 Mercedes Benz 560SL sports car in August 1988 for $26,120. This expense was reported as payment of business malpractice insurance.
Perwaiz, who was president-elect of the obstetrical staff at Chesapeake General Hospital, will be sentenced March 21. A physician's license is automatically revoked on a felony conviction.
KEYWORDS: TAX EVASION GUILTY PLEA by CNB