United States of America v. Gabriel David Guerrero

Los Angeles, California, criminal defense lawyer represented the Defendant charged with attempt to evade and defeat the payment of taxes and obstructing the administration of the IRS.

Gabriel David Guerrero, 60, of Pasadena,is a commercial real estate broker who for years did not file timely federal individual income tax returns, specifically for the years 1998, 1999, and 2001 through 2005. He later owed tax liabilities for the years 2012 and 2013.

After the IRS assessed taxes against Guerrero and attempted to collect them him via the sending of dozens of notices, Guerrero took steps to conceal his income and assets from the IRS. For example, he made extensive use of cash and cashier’s checks; submitted a false form to the IRS that significantly understated his income; and used a nominee bank account to deposit income.

Despite the IRS’s issuance of dozens of levies to bank accounts and brokers with whom Guerrero worked throughout the collection action from October 2013 to November 2017, the IRS obtained only $770 towards Guerrero’s tax liabilities for 1998, 1999, 2001 through 2005, 2012, and 2013 despite Guerrero earning approximately $1 million in income from his work as a commercial real estate broker over that same time frame.

“[Guerrero’s] conduct betrays a long-running and calculated effort to obstruct the Treasury, aggravated because [Guerrero] did not need to commit these violations, given he was well-compensated as a commercial real estate agent and maintained a commensurate lifestyle, including a home valued at $4,000,000 and monthly car lease payments of $1,200 and $1,100,” prosecutors argued in a sentencing memorandum.

IRS Criminal Investigation investigated this matter.

Assistant United States Attorney Steven M. Arkow of the Major Frauds Section and Justice Department Trial Attorney Robert A. Kemins of the Criminal Division’s Tax Section prosecuted this case.

The Defendant was found guilty and was sentenced to to 24 months in federal prison for engaging in a years-long pattern of obstructing the IRS from collecting taxes he owed, leading that agency to collect $770 in tax liabilities when he earned approximately $1 million from his employment during that time.