Monday, March 30, 2009

Tax Fraud: Los Angeles Preparer Sentenced To Probation

On March 26, 2009, Roland G. Uy, a Woodland Hills, California tax preparer who pleaded no contest last November to two counts of aiding others in filing false tax returns and three other felony counts was sentenced to a four-year suspended state prison term and five years of probation, during which time he must pay $20,000 each year in restitution to the State of California Franchise Tax Board (FTB). The case was prosecuted by the Los Angeles County District Attorney’s Office, the Fraud Interdiction Program.

Under the plea agreement Uy was ordered to pay a total of $159,000 in restitution, and had just over $59,000 by the time of sentencing. If Uy fails to pay the full amount of restitution it could result in prison time for him. According to the District Attorney's Office, Uy filed nearly 1,300 false tax returns on behalf of taxpayers. The FTB will seek civil reimbursements and penalties against clients who participated.

Attorney Commentary: This case shows the important of restitution in fraud cases. Payment of restitution can make the difference between prison time and probation. It often can make the difference between a felony and a misdemeanor. In this case, where the loss was over $150,000, imposition of probation is a good result if the evidence demonstrated his involvement in intentionally preparing false tax returns beyond a reasonable doubt. The term "state prison suspended" means that if Uy violates probation (by not paying restitution when he has the means to do so) or by committing another offense or not complying with the other terms of probation -- his sentence will be 4 years in state prison. This is a lot hanging over his head and gives him great incentive to comply with probation.


Any questions or comments should be directed to: tgreen@greenassoc.com Tracy Green is a principal at Green and Associates in Los Angeles, California. They focus their practice on the representation of licensed professionals and businesses in civil, business, administrative and criminal proceedings.

DISCLAIMER

DISCLAIMER: Green & Associates' articles and blog postings are prepared as a service to the public and are not intended to grant rights or impose obligations. Nothing in this website should be construed as legal advice. Green & Associates' articles and blog postings may contain references or links to statutes, regulations, or other policy materials. The information provided is only intended to be a general summary. It is not intended to take the place of either the written law or regulations. We encourage readers to review the specific statutes, regulations, and other interpretive materials for a full and accurate statement of their contents and contact their attorney for legal advice. The primary purpose of this website is not the commercial advertisement or promotion of a commercial product or service and this website is not an advertisement or solicitation. Anyone viewing this web site in a state where the web site fails to comply with all laws and ethical rules of that state, should disregard this web site.

The information provided on this website is for informational purposes only. It is not intended to create, and does not create, a lawyer-client relationship with Green & Associates, Attorneys at Law. Sending an e-mail to Tracy Green does not contractually obligate them to represent you as your lawyer, or create any type of client relationship. No attorney-client relationship will be formed absent a written engagement or retainer letter agreement signed by both Green & Associates and client and which specifies the scope of the engagement.

Please note that e-mail transmission is not secure unless it is encrypted. E-mail messages sent to Ms. Green should not include confidential or sensitive information.