Released: January 25, 2008
A Westlake Village man pleaded guilty on Thursday to felony charges including one count of tax evasion, three counts of grand theft, one count of failure to file Unemployment Tax returns, and one count of failure to appear while out on bail, according to the Franchise Tax Board (FTB).
Daniel Xavier Williams, 40, represented himself as the owner of Xavier Benefits Group Corporation and California Preferred Group, which marketed and administered health benefits for employer groups. Williams used his position to embezzle more than $600,000 in corporate funds from various corporations for his personal benefit. Williams failed to claim the $37,000 in taxes created by the embezzled funds on his state income tax returns for 2002-2004, according to court documents. All income is taxable including income from illegal sources.
Williams is facing six years in state prison at his sentencing on February 25, 2008. Restitution of taxes, penalties, interest, and the cost of investigation will be determined at that time.
The failure to file state tax returns contributes to the $6.5 billion tax gap now facing California. The tax gap is defined as the difference between the tax that is owed and the tax paid.
Anyone who has knowledge of tax fraud may call the FTB’s informant hotline at (800) 540-3453.
Ventura County Superior Court Judge Edward Brodie handed down the sentence in Courtroom 12 of the Ventura Hall of Justice. Ventura County Deputy District Attorney Howard Wise prosecuted the case. This was a joint case with the Ventura County District Attorney’s office, the Department of Insurance, and the FTB.