Chat with an FTB Representative

Tax News Criminal Corner

Tarzana Man Pleads Not Guilty to State Income Tax Fraud

A Tarzana man pleaded not guilty to five counts of filing fraudulent state income tax returns.

Our special agents arrested Nicholas A. Francisco, 59, of Tarzana, last week. Francisco, the owner of a check cashing business, allegedly failed to report more than $3.5 million in income on his 2003 through 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 our 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 tax that is owed and tax that is paid.

Los Angeles County Superior Court Judge Ray G. Jurado presided over the 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 us.

Back to September 2010 Tax News