A San Gabriel Valley man, Gabriel David Guerrero, has admitted to obstructing the Internal Revenue Service (IRS) from collecting taxes. Guerrero, a commercial real estate broker from Pasadena, pleaded guilty on Monday to one count of corruptly obstructing or impeding the administration of the Internal Revenue Code. He is currently free on a $50,000 bond.
According to his plea agreement, Guerrero did not file timely federal individual income tax returns for several years: 1998, 1999, and 2001 through 2005. He also owed taxes for the years 2012 and 2013. Despite earning about $1 million during this period, the IRS managed to collect only $770 in tax liabilities.
Guerrero employed various methods to hide his income and assets from the IRS after they assessed taxes against him. These included using cash and cashier’s checks extensively, submitting a false form that understated his income significantly, and utilizing a nominee bank account for depositing his earnings.
The IRS issued numerous levies between October 2013 and November 2017 but was able to recover only a small fraction of what Guerrero owed. The Justice Department disclosed these details in their announcement today.
United States District Judge Percy Anderson has scheduled Guerrero’s sentencing hearing for September 15. At that time, he could face up to three years in federal prison.
The investigation into this matter is being conducted by IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Steven M. Arkow of the Major Frauds Section along with Justice Department Trial Attorneys Robert Kemins and Christopher Gerace of the Tax Division.
