Chat with an FTB Representative

Beverly Hills Doctor Faces State Income Tax Evasion

tel 916.845.4800
Media Contact Only

Public Affairs Office
publicaffairsoffice@ftb.ca.gov

For Immediate Release

01.20.2011

A Beverly Hills physician self-surrendered on one felony count of failing to file his state income tax return, the Franchise Tax Board (FTB) announced.

EnRico Melson, M.D., 55, surrendered to customs authorities at the Los Angeles airport as he returned from New Zealand on January 19. Melson voluntarily returned to California when he learned of the warrant for his arrest.

According to FTB special agents, Melson allegedly failed to file his 2005 state income tax return and report the more than $1.8 million in income he received. Melson owes the state more than $300,000 in unpaid tax, penalties, and interest. The cost of the investigation will be added to this amount. Each tax count carries a maximum sentence of three years in state prison.

This is another prosecution by the Los Angeles County District Attorney's Fraud Interdiction Program. The program was launched in 2004 to more effectively investigate and prosecute health care fraud cases, which cost health insurers and government-funded health plans more than $100 billion nationally each year. The program targets attorneys, medical doctors, chiropractors, dentists, and clinic owners who have allegedly engaged in health care fraud.

The failure to file and report income is part of the $6.5 billion tax gap California faces each year. The tax gap is defined as the difference between the tax that is owed and the tax that is paid.

Melson was booked into the Los Angeles County Sheriff Department's Inmate Reception Center. Melson's bail is $160,000 and his arraignment is scheduled for January 20 at the Los Angeles County Clara Shortridge Folz Criminal Justice Center.

Assistant Deputy District Attorney David Berger with the Los Angeles County District Attorney's Major Fraud Division is prosecuting the case.

For more information on other taxes and fees in California, visit: taxes.ca.gov.

Connect With Us
Twitter | Facebook | YouTube