E. Martin Estrada, U.S. Attorney | U.S. Attorney's Office for the Central District of California
A San Gabriel Valley commercial real estate broker has admitted to obstructing the IRS in a long-term effort to avoid paying taxes, according to an announcement by the Justice Department. Gabriel David Guerrero of Pasadena pleaded guilty to a charge of corruptly obstructing or impeding the due administration of the Internal Revenue Code. He is currently free on a $50,000 bond.
Guerrero's plea agreement reveals that he failed to file timely federal income tax returns for several years, specifically 1998, 1999, and 2001 through 2005. He also owed taxes for 2012 and 2013. Despite earning around $1 million during this period, the IRS managed to collect only $770 in tax liabilities from him.
The IRS made multiple attempts to collect these taxes, sending numerous notices and levies from October 2013 to November 2017. Guerrero allegedly concealed his income and assets by using cash transactions and cashier’s checks extensively, submitting false forms that understated his income, and using a nominee bank account.
United States District Judge Percy Anderson has scheduled Guerrero's sentencing hearing for September 15. If convicted, Guerrero could face up to three years in federal prison.
The case is being investigated by IRS Criminal Investigation. Assistant United States Attorney Steven M. Arkow from the Major Frauds Section along with Justice Department Trial Attorneys Robert Kemins and Christopher Gerace are handling the prosecution.
