Real Estate Investment Scam Results in Prison
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Public Affairs Office
For Immediate Release
An Alhambra real estate investment business owner was sentenced to state prison after she pleaded guilty to one count of filing a fraudulent state income tax return and seven counts of grand theft, the Franchise Tax Board (FTB) announced.
Pam S. Chanla, 37, was sentenced to seven years in state prison and stipulated to the more than $570,000 restitution due FTB. According to court documents, Chanla was part-owner of CPM Holdings, LLC and PMC Interests, LLC. Chanla, and her business partner Carla Zimbalist, who passed away while serving a sentence in New York for similar charges, utilized the two LLCs to defraud investors by using their investments to purchase and renovate Southern California houses. During the course of the investigation, it was discovered Chanla failed to report the LLCs’ gross receipts exceeding $5.4 million for the years 2003 – 2005 and she failed to report her personal income of more than $2.3 million for these same years.
Chanla’s restitution hearing for the victims of the real estate scam is scheduled for February 2.
The underreporting of 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.
Los Angeles County Superior Court Judge Drew E. Edwards handed down the sentence Friday in Department 111 of the Clara Shortridge Folz Criminal Justice Center. Los Angeles County Deputy District Attorney Sun Chung prosecuted the case. This was a joint investigation with the Los Angeles County Sheriff’s Department.
For more information on other taxes and fees in California, visit: taxes.ca.gov.