An Orange County attorney was sentenced today to more than two years in state prison for felony state income tax evasion, grand theft, and preparing false records, according to the Franchise Tax Board (FTB).
Stephen P. Coleman, 51, a former office manager/legal assistant for a law office, was sentenced by Orange County Superior Court Judge Richard W. Stanford, Jr., to 28 months in state prison and ordered to pay nearly $40,000 to FTB in delinquent tax, penalties, interest, and cost of the investigation.
Coleman was found guilty May 1 by an Orange County Superior Court jury of embezzling more than $83,000 from his former employer from 1996 to 1998. Coleman made unauthorized disbursements to himself from the law office. He filed false 1996 and 1997 state income tax returns and failed to report the embezzled funds. All income is taxable, including income from illegal activities.
Coleman was admitted to the State Bar in 1998 and opened his own law practice in Orange County. He represented himself during the trial.
Orange County Deputy District Attorney Bill Overtoom prosecuted this case. This was a joint investigation of the Orange County District Attorney's office and the FTB.