San Anselmo Man Pleads Guilty to Tax Fraud and Charges Related to His Marijuana Cultivation
Media Contact Only
Public Affairs Office
For Immediate Release
Sacramento – A San Anselmo man pleaded guilty yesterday to six felony charges resulting from his multiple indoor marijuana growing operations, the Franchise Tax Board (FTB) said.
Alan Flaks, 56, plead guilty to two counts of filing false state income tax returns, one count of money laundering, one count of structuring, one count of cultivating marijuana and one count of possessing marijuana for sale.
Flaks was running sophisticated indoor marijuana operations in his residence in San Anselmo, another home in San Rafael and a third one in Arcata. During the 2011 search warrant, agents from FTB and California Department of Justice, Bureau of Narcotic Enforcement seized more than 1,500 marijuana plants, 100 pounds of marijuana, and $200,000 in cash.
From 2004 to 2010, Flaks failed to report nearly $1 million of income from his marijuana operations. He structured cash deposits by breaking them into smaller amounts to avoid the Currency Transaction Report filing requirements. He also laundered money from his indoor marijuana growing operations to pay for expenses to promote and carry on his illegal activity at his home and two other sites.
"Thanks to the thorough investigation by the Franchise Tax Board and the Department of Justice, we were able to secure a conviction which requires Mr. Flaks to repay the People of California the taxes he owed as well as the cost of the investigation which led to his conviction and prison sentence," said Marin County Deputy District Attorney Sean A. Kensinger, who prosecuted the case. "We believe the interests of justice are well served with this result."
Flaks is scheduled for sentencing on December 18, 2013 by Marin County Superior Court Judge James Ritchie in Department J. He faces 5 years and 4 months in prison along with restitution and fines.
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.
For more information on other taxes and fees in California, visit: taxes.ca.gov