South Bay Woman Pleads Guilty to $1 Million Tax Fraud

Los Angeles – 27 May 2011 – A South Bay woman who owned and operated a boarding care facility that provided housing and care for mentally disabled adults pleaded guilty to a federal tax charge this morning in United States District Court.

Marketta Marie Barnett, 51, of Rancho Palos Verdes, pleaded guilty to one count of subscribing to a false federal income tax return for the 2003 calendar year. Barnett entered her guilty plea before United States District Judge Dean D. Pregerson.

According to her plea agreement, Barnett owned and operated a boarding care business that provided housing and care for mentally disabled adults. For the services provided, Barnett was paid by the residents, the Social Security Administration, the State of California, or other government agencies.

During the years 2003 through 2005, Barnett maintained several bank accounts, including accounts held in the name of her boarding care business, Quincy Manor Charity Crest, and deposited income from her boarding care business into these accounts. Barnett failed to report all of the income she received from the business on the tax returns that she and her husband filed for the years 2003 through 2005.

In filing her income tax returns for the years 2003, 2004 and 2005, Barnett failed to report approximately $415,322, $307,979 and $330,845, respectively, in gross receipts on the Schedule C forms filed with the tax returns for those years, resulting in a tax loss of approximately $380,126.

As a result of today’s guilty plea, Barnett faces a statutory maximum sentence of 3 years in federal prison and a fine of $250,000.

Judge Pregerson ordered Barnett to appear for sentencing on September 19, 2011.

The investigation of Barnett was conducted by IRS – Criminal Investigation in Los Angeles in conjunction with the United States Attorney’s Office for the Central District of California.

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