A Diamond Bar man was sentenced today to more than four years in state prison on one count of grand theft and one count of filing false state income tax returns, according to the Franchise Tax Board (FTB).
Santosh K. Maheshwari, 60, former bookkeeper for a Southern California tire and wheel company, pled guilty to embezzling more than $317,000 over a seven year period from his employer. Maheshwari had the owner of the company sign blank checks to pay overstated sales and payroll tax expenses from 1993 through 2000. Maheshwari deposited the inflated company tax payment checks into his personal checking account. He would then send a check to the taxing agency from his personal account for the actual amount due and pocket the difference, typically $3,000 more than the actual amount of taxes due.
Maheshwari failed to report the alleged embezzled funds on his state income tax return. He owes the state more than $15,300 in delinquent taxes, penalties, and interest for 1996 -1998. All income is taxable, even income from illegal activities.
Los Angeles County Superior Court Judge Michael Pastor sentenced Maheshwari to 4 years and 8 months in state prison. In addition to the jail time, Judge Pastor ordered Maheshwari to pay the FTB $18,823 in delinquent state income taxes, penalties, interest including the cost of the investigation. Maheshwari was also ordered to make full restitution of more than $317,000 to his former employer.
Deputy District Attorney Richard A. Lowenstein of the Los Angeles County District Attorney's Office prosecuted the case. This was a joint investigation between the Los Angeles District Attorney's Office, L.A. County Sheriff and Franchise Tax Board.