Owner of Pittsfield Township party store accused of being part of tax refund check scheme
The owner of the Express Mart liquor store in Pittsfield Township is under federal investigation for being a part of a year-long scheme to cash other people’s tax refund checks.
An affidavit filed Friday in U.S. District Court of Eastern Michigan Friday named Waad Jameel Karana as the man who received 29 United States Treasury tax refund checks worth $141,951 from a local man, who had been sent the checks by a man in Florida.
The owner of the Express Mart liquor store in Pittsfield Township is under federal investigation for being a part of a year-long scheme to cash other people’s tax refund checks.
Angela J. Cesere | AnnArbor.com
On Thursday, agents arrested Karana at the store, following a short investigation into a scheme that federal authorities report went on for about one year.
The man gave agents the cash before investigators entered the store and arrested Karana on suspicion of conspiring to transfer in interstate commerce more than $5,000 of securities taken by fraud, according to the affidavit. He faces a maximum of 10 years in prison on the charge.
The Secret Service declined to comment Friday afternoon because the investigation is ongoing.
According to the affidavit, the scheme unraveled when the local man — who is not currently facing any charges in the case — was arrested by the Ypsilanti Police Department on outstanding warrants Wednesday.
During that arrest, police found 29 U.S. Treasury tax refund checks, all made out to different people and containing Florida addresses, according to the affidavit.
The man told Burks he was on a trip to Florida when he had contact with a person who operated an income tax preparation business. The affidavit stated the man recruited the local man to receive tax refund checks from him in the mail and take them to Karana at the Express Mart, 5490 W. Michigan Ave., to cash them.
The man told the local man he would send a percentage of each check back to Florida and he could keep $100 for each check cashed, the affidavit stated. The local man contacted Karana on Thursday, while working under the direction of agents, and was told to bring the checks to the store where Karana would give him money.
On Thursday afternoon, the local man went to the Express Mart and exchanged $141,951 in U.S. Treasury checks for $105,200 in cash, the affidavit stated. He was under constant visual surveillance by agents while entering and exiting the store and had nothing on him but the checks and the cash.
After receiving the $105,200, agents went into the store and asked to see the manager. Karana identified himself as the manager and led agents to a backroom. The affidavit states Karana admitted he had received the treasury checks, which were still sitting on his desk.
Karana admitted to receiving checks from the local man twice a week for about a year, the affidavit revealed.
The store still had a police presence in front of it Friday morning and the investigation into the incident is ongoing.
A message left at a phone number listed for Karana was not immediately returned Friday afternoon.
Kyle Feldscher covers cops and courts for AnnArbor.com. He can be reached at kylefeldscher@annarbor.com or you can follow him on Twitter.
Comments
Moe
Wed, May 23, 2012 : 1:20 p.m.
I don't know what Everyone's problem is mr karana did nothing but help every customer he could. People can ask karana for help with ease knowing he would do wha he can I don't know of I would call this a scheme didn't seem like he knew seems like he was just helping someone out and at the same time getting a benefit out of it
Joe Glock
Fri, May 18, 2012 : 5:02 a.m.
First off, wow....Such hate.... I've been shopping there for years now and Wallys helpedfamily , friends, the community & myself when we didnt enough food ect to get by till payday... I wish nothing but the best for everyone there, Btw, Wally AND his employees DO PAY TAXES! Stay up buddy!
Carly Underwood
Thu, May 17, 2012 : 10:18 p.m.
Wally has always been great to my entire family. He helps my disabled mom out when she doesn't have enough money for bread that week... Something most people wouldn't consider these days!! Keep your head up, Wally! You are loved!
nana kasham
Sat, May 12, 2012 : 9:44 p.m.
wally is one of the nicest guys around pittsfield u guys just dont know him u read bullshit like this from ppl tht criticize you not knowing anything. We all LOVE you wally! This aint nothing but a minor setback.
TRF69
Thu, May 24, 2012 : 7:43 p.m.
I agree, I have known Wally for over 10 years and he is great guy! He would give you the shirt off his back if you needed it!
luc67
Sun, May 13, 2012 : 4:53 p.m.
This is what you call a MINOR Setback really ? Nicest guy around Pittsfield Really ? I think you talking about different Wally.
Jed I Knight
Sat, May 12, 2012 : 8:46 p.m.
Sort of related - I have shopped this store and others and found one brand of beer in another sixpack's case - or find 12 packs via cutting cases in half. I think this is a move to skirt tax laws - any readers know this? Stores break down larger units of products and sell them in smaller units. I am quite sure this is a liquor law / tax violation scheme. Also drove by and saw two cop cars blocking exits around 4:30 on Thurs - figured robbery.... Then saw guy in front in plain clothes with pistol on hip in holster talking to two folks in an unmarked car in front of the store. Folks in car handed guy something and then the guy with gun making a call.. didnt know what was afoot...
ffej440
Sat, May 12, 2012 : 8:22 p.m.
Seems a lot of people still think there is a seven year free tax rule for immigrants. THIS IS AN URBAN LEGEND. Look it up anywhere.its NOT TRUE.
boo
Sat, May 12, 2012 : 2:47 p.m.
I hope they put these clowns away for life.
TFR
Sat, May 12, 2012 : 2:20 p.m.
I am so happy that this story is about THAT party store and not my beloved Williams Party Store.
clownfish
Sat, May 12, 2012 : 12:40 p.m.
Good work by our police!
OLDTIMER3
Sat, May 12, 2012 : 12:34 p.m.
Takes advantage of the no tax for so manty years then takes other peoples tax refunds. Send him back home to prison.
Diane
Sat, May 12, 2012 : 11:30 a.m.
Is he ONE of the foreigners that get tax breaks from the government? Throw the book @ him.
Silly Sally
Sat, May 12, 2012 : 1:01 p.m.
He sure seems to be, and he brought his ethics with his to America. While Americans have their share, certain parts of the world do seem to have a much higher percentage. I hope he gets double trouble
Robo
Sat, May 12, 2012 : 12:11 p.m.
I love Foreigner. Fill my eyes with that double vision.
McGiver
Sat, May 12, 2012 : 11:06 a.m.
I never trust any so-called partystore operators these days.
RJA
Sat, May 12, 2012 : 12:52 a.m.
Have never been in the store, so no problem here.
15crown00
Fri, May 11, 2012 : 9:49 p.m.
go to that store all the time
Townie
Fri, May 11, 2012 : 9:42 p.m.
Hey Kyle - how about giving the physical location of the store at the beginning? Remember the who, where, when, what of story writing - don't bury it. Unless that's part of the business model of aa.com to keep us reading (and getting frustrated - not good).
Basic Bob
Sat, May 12, 2012 : 1:52 p.m.
It's funny how they identify locations in Pittsfield Township. When they found pot growing a mile away, it was "Ann Arbor area". People in Ann Arbor were indignant because to them the Meijer is in Ypsi. I'm sure the editors took lessons in how to get Google hits and get folks to scroll past ads. It's not a paid service, so there you go.
ypsicat
Sat, May 12, 2012 : 11:04 a.m.
I've noticed that too. They must think we're stupid.
Alan Benard
Fri, May 11, 2012 : 10:54 p.m.
Thank you. Look for your comment to receive massive negative votes. I guess the reporters rally round and vote down comments which correctly point out the journalistic and copy-editing shortcomings in AnnArbor.com's articles.
Robert Granville
Fri, May 11, 2012 : 9:31 p.m.
Moral of the story: E-file and request direct deposit.
YpsiLivin
Fri, May 11, 2012 : 11:26 p.m.
You can request direct deposit without e-filing. I personally will never e-file until I can e-file my tax return DIRECTLY with the IRS. I've never understood why a third-party needs to be involved in that transaction.
braves03
Fri, May 11, 2012 : 7:37 p.m.
Wow! I go to this store all the time. Wally and Chris have always been cool to deal with. Keep your head up Wally, get a good lawyer my friend!
Joe
Fri, May 11, 2012 : 6:38 p.m.
I was walking into that store yesterday when it was being raided. I thought someone got shot. It was crazy. Some lady standing at the door as I got out of my car, and she turned and looked at me, and had a gun holstered on her hip. Asked if I was a family member, and I said I was just trying to buy some beer. So next thing I know, 3 pittsfield cop cars come flying into the parking lot and blocked the 2 main entrances. Then 2 more un marked cars with people with badges showed up. They let me out, but I thought for sure someone robbed the place and shot the clerk (perhaps a mint green 1963 Pontiac Tempest) glad no one was killed.
TinyArtist
Sat, May 12, 2012 : 2:05 p.m.
Are you suggesting the clerk was a car or that he was shot by a car? I think you already had too much of that beer.
nickcarraweigh
Sat, May 12, 2012 : 1:57 p.m.
Could not have been the yutes, who couldn't afford the Posi-Traction.
clownfish
Sat, May 12, 2012 : 12:38 p.m.
Someone was being robbed, you and me!
Pjohn3
Fri, May 11, 2012 : 8:03 p.m.
Metallic Mint Green Tempest driven by the 2 yoots.
Joe
Fri, May 11, 2012 : 6:50 p.m.
no doubt. I didnt even tell the wife, cause I didnt want her freaking out about someone getting shot. That store was always pretty sketchy though. Selling glass bongs on the counter, "synthetic weed" that kind of crap. Store just down the road towards Saline is much nicer.
Craig Lounsbury
Fri, May 11, 2012 : 6:44 p.m.
bet all that made you thirsty. ....Hope the beer was cold when you finally got some.
bunnyabbot
Fri, May 11, 2012 : 6:06 p.m.
oh there is more to this story for sure.
Absent
Fri, May 11, 2012 : 5:43 p.m.
Hmm, a bit odd Mr. Waad had 100k available to him on the same day the 'bait' called. I wonder how far the rabbit hole goes. Oh hey, you got a 100k in like 3 hours.. Oh ya. np. /odd
Bones
Fri, May 11, 2012 : 5:35 p.m.
I never liked going into taht store. It always felt shady to me. No wonder.
MixedStock
Sat, May 12, 2012 : 10:57 a.m.
I agree. Went in there once and will never step foot inside of it again. Bad vibes all around.
Goodphotographer
Fri, May 11, 2012 : 4:58 p.m.
Wow, talk about a bad day at the store. Make it hard to play lottery numbers with so much tape up.