CALIFORNIA – A California commercial real estate broker pleaded guilty to obstructing the IRS from collecting taxes on $1 million in income, leaving the agency with only $770 collected, the Department of Justice (DOJ) announced June 10.
Gabriel David Guerrero, of Pasadena, pleaded guilty to one count of obstructing the administration of the Internal Revenue Code. Guerrero is free on a $50,000 bond.
Guerrero hid income and assets to evade collection
According to his plea agreement, Guerrero is a commercial real estate broker who did not file timely federal individual income tax returns for the years of 1998, 1999, and 2001 through 2005.
He later owed tax liabilities for the years 2012 and 2013.
After numerous IRS tax notices, Guerrero hid his income and assets to evade collection. He used cash, cashier’s checks, submitted a false IRS form that understated income, and used a nominee bank account to hide funds.
Guerrero faces up to three years in federal prison
Despite issuing dozens of bank account levies from 2013 to 2017, the IRS said it only collected $770 toward Guerrero’s tax liabilities for multiple years, even though he earned about $1 million as a commercial real estate broker during that period.
Judge Percy Anderson set Guerrero’s sentencing for September 15, where he faces up to three years in federal prison.
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