Los Angeles Man Pleads Guilty to Possession of a Controlled Substance and State Income Tax Evasion
Released: April 10, 2009
Sacramento – A Los Angeles man pleaded no contest to felony counts of possession of cocaine for sale with possession of a firearm and state income tax evasion, the Franchise Tax Board (FTB) announced.
Rodolfo Aguirre, Jr., 44, sentencing is scheduled for June 12. According to court documents, Aguirre earned more than $1.5 million from his illegal drug sales. He also did not report any of this income on his state income returns. All income is taxable including income from illegal sources.
Aguirre faces two years in state prison and restitution of more than $195,000 to the FTB representing the unpaid tax, penalties, interest, and the cost of the investigation.
The failure to file income tax returns and the underreporting of income are two of the components that make up the annual $6.5 billion tax gap California faces. The tax gap is defined as the difference between the tax that is owed and the tax that is due.
Los Angeles Superior Court Judge Katherine Mader accepted the plea yesterday in Department D of the Los Angeles Superior Court Airport Court. Los Angeles County Deputy District Attorney Jeff Kelly prosecuted the case. This was a joint investigation between the San Gabriel Valley Police Department, the Los Angeles County District Attorney, and FTB.