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San Anselmo Man Arrested on Tax and Other Felony Charges Stemming from Marijuana Cultivation

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For Immediate Release

10.18.2012

Sacramento – A San Anselmo man surrendered to Franchise Tax Board (FTB) agents today on 42 felony charges resulting from his multiple indoor marijuana growing operations uncovered during the course of an income tax investigation conducted by FTB's Criminal Investigation Bureau.

Alan Flaks, 54, faces six counts of state income tax fraud for filing false 2004 – 2009 income tax returns, one count of state income tax evasion for failing to file his 2010 income tax return, 17 counts of money laundering, and 16 counts of structuring cash deposits to avoid the currency transaction report filing requirement. During the years under investigation, Flaks failed to report nearly $1.4 million of income and owes the state more than $115,000 in unpaid tax. Interest, penalties, and the cost of the investigation will be added to this figure and sought as restitution.

Flaks, was also under investigation by the California Department of Justice, Bureau of Narcotic Enforcement (BNE), faces felony charges for allegedly cultivating and possessing for sale marijuana. FTB and BNE agents seized more than 1,500 marijuana plants, 100 pounds of marijuana, and $200,000 in cash.

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All income is taxable including income from illegal sources.

Flaks was booked into the Marin County Jail. His arraignment and a source of bail hearing are scheduled for tomorrow in the Marin County Superior Court.  The bail is set for $500,000.  Flaks remains in custody until the bail hearing. Each tax count carries a maximum sentence of three years in state prison.

Marin County Deputy District Attorney Sean A. Kensinger is prosecuting the case.

FTB’s criminal investigation program identifies and investigates cases of tax evasion and tax fraud to encourage compliance with California income tax laws and maintain the public trust.

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