A Fountain Valley couple that operates a multi-million dollar electronics company in Orange County pleaded not guilty today to multiple felony charges of state income tax evasion, according to the Franchise Tax Board (FTB).
George H. Jesson Jr., aka Nick Jesson, 52, who owns No Time Delay Electronics, Inc., of Huntington Beach, and his wife, Trina T. Jesson, aka Trina T. Vu, 40, were arrested on September 5 by FTB investigators. Mr. Jesson is charged with eight counts of felony state income tax evasion. Mrs. Jesson is charged with four counts of felony state income tax evasion.
According to investigators, the Jessons failed to report nearly $3 million in income for 1997, 1998, and 1999 on their state income tax returns. They allegedly owe the state more than $500,000 in delinquent income taxes, penalties, and interest.
Jesson has participated in paid advertisements with the "We the People for Constitutional Education," a tax protester organization that contends that paying taxes is not required in the United States. They support their argument with common fallacies like taxes are unconstitutional, currency is not money since the United States abandoned the gold standard, wages are not income, etc. They have even gone so far as to purchase full-page advertisements in nationwide newspapers like USA Today to encourage others to stop paying taxes. According to investigators, the Jessons filed joint tax returns reporting zero income and zero tax due, a tactic commonly used by tax protesters.
Orange County Superior Court Judge Stephanie George presided over today's arraignment. Senior Deputy District Attorney William Overtoom is prosecuting this case. If convicted of all charges, Mr. Jesson faces eight years and four months in state prison and Mrs. Jesson faces seven years in state prison. The Jesson's are currently free on $250,000 bail each. Their next court date is scheduled for January 16.
No Time Delay Electronics, Inc. is a worldwide provider of electronic component products. Gross receipts reported for 1999, the last year Jesson filed a corporate tax return, was $5.2 million.