A successful Los Angeles businessman seems to have missed the part about paying his taxes.
Following a cooperative investigation by the U.S. Department of Justice, California Franchise Tax Board (FTB), and California Employment Development Department (EDD) – and facilitated by the Tax Recovery and Criminal Enforcement (TRaCE) Task Force – Enyinnaya C. Ojogho, the owner and operator of several retail soccer stores in Los Angeles was charged this past August with the commission of various acts of tax evasion:
Filing false corporate and personal state income tax returns
The FTB investigation indicated that from 2010 through 2013, Ojogho underreported his companies’ gross receipts in violation of California Revenue and Taxation Code (RTC) Section 19705(a)(1). Ojogho underreported more than $8 million in revenue and failed to pay roughly $128,000 in corporate taxes.
The investigation also revealed that Ojogho didn’t report more than $8 million in income he received from his companies on his personal tax returns, underpaying his personal income tax by around $900,000.
Paying employees under the table
The EDD investigation revealed that from 2006 through 2013 Ojogho also evaded more than $200,000 in payroll taxes. He had been paying his employees in cash, and during those years he failed to file (or falsely filed) and to pay payroll taxes with the EDD in violation of Unemployment Insurance Code Sections 2117.5 and 2118.5.
Special allegations
Two additional special allegations have been made against Ojogho:
- “Taking in excess of $1,300,000” under Penal Code Section 12022.6(a)(3), for taking property with a value exceeding $1,300,000 in the commission or attempted commission of a felony.
- “White collar crime enhancement” under Penal Code Section 186.11(a)(2), for engaging in a pattern of related felony conduct resulting in the loss of more than $500,000 by another person or entity.
In all, Ojogho, the State of California is charging 12 counts of filing false income tax returns, 16 counts of failure to file tax returns, and 16 counts of failure to pay tax.
California criminal tax attorneys
Whether you need help mitigating the consequences of a tax crime that you committed, or are innocent of all wrongdoing, the criminal tax attorneys at Moskowitz, LLP are here for you. Contact our San Francisco office for assistance.