Tarzana Man Pleads Not Guilty to State Income Tax Fraud - $3.5 Million in Unreported Income
tel 916.845.4800 cell 916.416.3685 John.Barrett@ftb.ca.gov
Public Affairs Office John Barrett
For Immediate Release
A Tarzana man pleaded not guilty to five counts of filing fraudulent state income tax returns, the Franchise Tax Board (FTB) said.
Nicholas A. Francisco, 59, of Tarzana, was arrested last week by FTB special agents. Francisco was the owner of a check cashing business, who 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.
Los Angeles County Superior Court Judge Ray G. Jurado presided over Monday’s arraignment in Department 30 of the Clara Shortridge Folz Criminal Justice Center. 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 Los Angeles District Attorney’s office and FTB.
For more information on other taxes and fees in California, visit taxes.ca.gov.
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