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Tarzana Man Arrested for State Income Tax Fraud

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John.Barrett@ftb.ca.gov

Public Affairs Office
John Barrett

For Immediate Release

07.08.2010

A Tarzana man was arrested today by FTB special agents on five counts of filing fraudulent state income tax returns, the Franchise Tax Board (FTB) announced.

Nicholas A. Francisco, 59, of Tarzana, was the owner of a check cashing business. According to FTB special agents, Francisco allegedly failed to report more than $3.5 million in income on his 2003 – 2007 state income tax returns. Francisco owes the state more than $735,000 in unpaid tax, interest, and penalties. The cost of the investigation will be added to this amount and sought as restitution. 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. Francisco came to FTB’s attention during the investigation of an unrelated criminal case involving a medical doctor who utilized Francisco’s check cashing business as part of his medical fraud scheme.

The failure to 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.

Francisco was booked into the Los Angeles Inmate Reception Center. His bail is set at $737,000. His arraignment date is not yet scheduled.

Los Angeles Deputy District Attorney David Berger of the Los Angeles District Attorney’s Health Care Fraud Unit is prosecuting the case. This is a joint investigation between the LA DA’s office and FTB.

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

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