A Seal Beach man was sentenced today for two counts of failing to file state income tax returns, according to the Franchise Tax Board (FTB).
Richard A. Morley, 58, former controller for a landscape business, was charged with diverting more than $326,000 via wire transfers from his employer's bank account for his own personal use between 1997 and 2000. Morley was found guilty of failing to file state income tax returns for 1998 and 1999, and failing to report more than $300,000 in gross income from both his W-2s and the alleged embezzled funds. He owes the state more than $45,000 in delinquent taxes, penalties, and interest. All income is taxable even income from illegal activities.
Orange County Superior Court Judge Richard W. Stanford, Jr. sentenced Morley to 2 years and 8 months in state prison. The judge issued the sentence and stated Morley showed "no remorse" for his misdeeds. In addition to the jail time, Judge Stanford ordered Morley to pay the FTB more than $53,000 in delinquent state income taxes, penalties, and interest plus the cost of the investigation. Morley terminated his original attorney and requested a public defender because he "only has $500 at this time because he spent all of the money to maintain a high living style." Morley is reported to be a Canadian citizen.
The jury was unable to reach a verdict on forgery and grand theft charges against Morley. Those charges may be re-filed and tried again in Orange County Superior Court.
Deputy District Attorney Ronald L. Cafferty of the Los Angeles County District Attorney's Office prosecuted the case. This was a joint investigation between the Anaheim Police Dept. and Franchise Tax Board.