A Scottsbluff businessman and his wife who operate Cheema Investments, Cheema and Cheema, Cheema Capital, and other limited liability companies are facing felony tax evasion and theft charges.
Kuldip and Carol Singh of Scottsbluff were both charged Tuesday with two counts each of felony State Income Tax Evasion and Sales Tax Evasion, and one count each of Filing a False Tax Return and Theft by Unlawful Taking of $5,000 or more.
Court records say Nebraska Revenue Department Investigator Marcus Ford opened a case in June 2020 and was working with NSP Investigator Rob Jackson, who spearheaded a bootlegging investigation which determined Kuldip Singh had been purchasing liquor in Wyoming and bringing it to his Nebraska stores for sale.
The DOR investigation focused on Singh’s liquor purchases and received all purchases of liquor, beer and wine for all of the liquor stores and bars he owned from January 2017 through the end of last year.
A subsequent audit analysis showed that Singh’s purchases for many of his retail locations were greater than his reported taxable sales for those items purchased over that four year period. The filing says a retail establish would not be able to say in business if their purchases exceeded their sales for even one year. The Department of Revenue determined the Singhs under-reported their sales and taxes to the State of Nebraska during the periods of January 2018 through November 2020.
The affidavit also alleges that Kuldip Singh knowingly filed false sales tax returns. Ford says there are additional unreported sales taxes owed in the amount of $87,644 under Cheema Capital LLC and $21,706 under Cheema & Cheema LLC.
Through the personal and business bank account records of Kuldip Singh and Cheema Capital LLC, authorities say Singh has under-reported income for the tax years of 2018 and 2019, and owes $70,171 in state income tax for those years.
Kuldip and Carol Singh were arrested Tuesday evening on the charges, which are Class 4 felonies for the tax-related counts, and a Class 2A felony on the theft charge, with both posting bond of 10% of $100,000 within hours.
Court records do not indicate when they are scheduled to make their initial appearances in Scotts Bluff County Court.
