The owner and CEO of Powerplant Maintenance Specialists, Inc. of Huntington Beach, Calif., a major power plant maintenance provider was arraigned today in Orange County Superior Court on eight felony charges of state income tax evasion, according to the Franchise Tax Board (FTB).
Richard G. Engel, 59, of Newport Beach, surrendered at the Harbor Justice Center in Newport Beach, two days after a warrant was issued for his arrest. His ex-wife, Jolene S. Engel, aka Jolene S. Hulick, 53, is also charged with eight felony counts of state income tax evasion. She also surrendered herself during arraignment at the Harbor Justice Center.
According to investigators, the Engels failed to file corporate income tax returns for 1998-2001 and failed to report gross income of nearly $190 million. The Engels owe nearly $9 million in state corporate income taxes, penalties, and interest.
In addition to their corporate tax charges, Richard Engel filed false personal income tax returns for 1998-2000 and did not file a tax return for 2001. Jolene Engel failed to file personal income tax returns for 1998-2000 and filed a false return for 2001. Collectively, they underreported their personal income by more than $12.2 million and they owe nearly $2 million in personal income taxes, interest, and penalties.
"California has 'zero tolerance' for tax cheats," said State Controller and FTB Chair Steve Westly. "Taxpayers in this state pay a high price for tax evasion."
"Everyone has to pay his or her fair share of taxes. No one has the right to refuse to pay their taxes and spend their money on luxury goods," said Orange County District Attorney Tony Rackauckas. "It is especially necessary for us to vigorously pursue prosecutions such as these when local governments are forced to make painful choices to cut governmental services for people who really need them."
Powerplant Maintenance Specialists, Inc., installs and services boilers and pressure vessels for power plants, including most Southern California Edison plants in California since 1983 to the present. Richard Engel has a bachelor's degree in Mechanical Engineering from Oklahoma State University and a law degree from Western State University.
Orange County Senior Deputy District Attorney William Overtoom will prosecute this case. Bail was set at $500,000 each for both suspects. If convicted of all charges, they each face 16 years 8 months in state prison.