Santa Ana, California – LawFuel – Legal Announcement Service – Yesterday afternoon, a federal jury in Santa Ana convicted a Palm Springs man of five counts of tax fraud relating to income tax returns he filed with the Internal Revenue Service for the years 1999 through 2003.
Rene Boudewijn Kohler, of Palm Springs, the owner of Ozz Supper Club bar and restaurant in Buena Park, California, from 1990 to 2005, was indicted last year on five counts of subscribing to false tax returns. Kohler was convicted at trial for failing to report over $2 million in revenues Ozz Supper Club received from patrons as door fees collected from customers to enter the premises.
According to court papers, Kohler maintained records of the daily revenues generated by Ozz Supper Club that included the door income collected from patrons. According to Kohler’s bookkeeper, monthly income ledgers were prepared that contained, among other things, a column that detailed the door income. At Kohler’s request, monthly profit and loss statements were prepared that included the door income.
In addition to preparing the profit and loss statements that showed the door income, Kohler also asked his bookkeeper to prepare year-end profit and loss statements that left blank the door income figure. The profit and loss statements that did not detail the door income received by Ozz Supper Club were provided to Kohler’s tax return preparer and used in the preparation of Kohler’s tax returns for the years 1999 through 2003. Conversely, when Kohler’s business was condemned by Caltrans, he provided Caltrans’ appraisers with the profit and loss statements prepared by his bookkeeper that included the door income generated by Ozz Supper Club for the years 1999 through 2004.
At sentencing, Kohler could face up to 15 years in prison, three years for each charge, in addition to fines totaling $500,000. United States District Judge Alicemarie H. Stotler remanded Kohler to the custody of the U.S. Marshalls pending a hearing on a flight risk issue raised by prosecutors at the conclusion of Kohler’s trial. The hearing on this matter is set for Monday, May 19, 2008. Kohler’s sentencing has been scheduled for August 8, 2008.
The investigation and prosecution of Kohler was conducted by IRS – Criminal Investigation’s Los Angeles Field Office and the United States Attorney’s Office in Santa Ana.List your legal jobs on the LawFuel Network