LawFuel.com – Los Angeles – This afternoon, an unlicensed stock promoter was sentenced to federal prison after previously pleading guilty to being a part of a conspiracy to obstruct the Internal Revenue Service and for subscribing to a false tax return.
Nicholas Myles Garcia, 46, who has been in custody since his arrest in August 2009, was sentenced by United States District Judge Manuel L. Real to spend 51 months in federal prison, pay restitution of $327,980 to the IRS, and spend three years on supervised release after serving his sentence.
According to court records, Garcia operated several shell entities that he used to receive and sell shares of stock that he earned as compensation. During the years 2003, 2004, and 2005, Garcia, with the assistance of others, devised a scheme to hide from the IRS his receipts from the sale of stock he had earned as compensation for stock promoting activities.
According to court records, the tax charges in this case involve a multi-year scheme during which Garcia illegally received stock in numerous public companies. Garcia deliberately sold this stock through numerous nominees in order to hide this income from the IRS. Between 2003 and 2005, Garcia received more than $1 million in stock proceeds that he failed to report as income to the IRS. Garcia convinced several individuals to assist him in hiding his ill-gotten income.
In an effort to conceal his compensation from the IRS, Garcia would have the companies whose stock he promoted issue stock in the names of various nominees, including friends, who let Garcia use their bank and brokerage accounts to execute stock trades. Garcia used these accounts to receive his stock, sell the shares, and transfer the proceeds.
Garcia’s conduct resulted in a tax loss of more than $327,000 to the federal government.
At his change of plea hearing, Garcia admitted that he signed a personal federal income tax return, IRS Form 1040EZ, for tax year 2003, that he submitted to the IRS. Garcia admitted that the 2003 tax return did not list any income based on Garcia’s stock promotion activities nor from the sale of stock. Garcia admitted that he knew that he was required to file a truthful and complete tax return with the IRS and deliberately failed to do so.
Garcia began serving his sentence immediately.
The investigation and prosecution of Garcia was conducted by IRS – Criminal Investigation in Los Angeles in conjunction with the United States Attorney’s Office for the Central District of California.List your legal jobs on the LawFuel Network