- 3 -
America account). The remaining three accounts were not in
petitioner’s name but were subject to his control: (1) “Bona
Trust” account at Cathay Bank (the Bona Trust account); (2) “Amex
Hospitality” account at Citizens Bank (the Amex Hospitality
account); and (3) the “Amex Professional Services Group” account
at East West Bank (the Amex Services account).
Petitioner did not make estimated tax payments or file a
Federal income tax return for 1996.
B. Criminal Tax Investigation
Petitioner was the subject of a criminal investigation
regarding his 1995 tax return and his failure to file tax returns
for 1993, 1994, and 1996. The criminal investigation was
conducted by Special Agent Fred Bautista (Special Agent
Bautista). As a result of the investigation, criminal charges
were filed against petitioner, one count under section 7201 for
an attempt to evade or defeat tax in 1995 and three counts under
section 7203 for willful failure to file tax returns in 1993,
1994, and 1996. On October 12, 2001, petitioner pleaded guilty
to the charges. As part of the plea agreement, petitioner
admitted to receiving income of at least $645,253 in 1996.2
Petitioner was sentenced to 33 months on the count under section
2 The plea agreement was under seal at the time of trial
and was not considered by the Court. See infra p. 17. However,
this admission by petitioner as part of the plea agreement was
established by independent evidence. See infra p. 14.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011