August 6, 2001
RIVERSIDE COUNTY JUICE MAKER
ADMITS TO FILING FALSE TAX RETURNS
A former Riverside County juice manufacturer and distributor today
admitted that he filed false income tax returns with the Internal Revenue
Glen F. Richey, 64, of Winchester, pleaded guilty today in United States District Court in Los Angeles, admitting that he defrauded the United States Treasury of income taxes totaling over $462,000 on tax returns he filed for the 1987, 1988 and 1989 tax years.
During the time of the criminal conduct, Richey operated under the brand names “Frosty Fruits,” “J.Rich,” “R&M Distributing,” and the “Juice Factory.” In the early 1990s, Richey’s juice business was the largest producer of fresh fruit juice in California. The juice business operated in Westminster from 1984 to 1990 before moving to Beaumont, California and operating at that location from 1990 to 1993.
In documents filed with the court, Richey admitted that he filed tax returns in 1995 in which he falsely reported that he only had losses in his juice business and did not owe any taxes. Richey in fact had earned a substantial income from his business, which he used to make investments and to pay for personal expenses. Richey admitted that he spent $2 million during the years 1987 through 1991 to purchase, raise and breed Peruvian Paso horses, and to maintain the Winchester ranch where the horses were located.
Richey also admitted that he cashed checks totaling $800,000 that
were made out to his business, and spent over $200,000 towards the purchase
and maintenance of agricultural properties in San Diego County.
Richey is scheduled to be sentenced on October 29 by Chief United States District Court Judge Terry J. Hatter Jr. He faces a maximum sentence of three years in prison and a maximum fine of $900,000.
The case against Richey is the result of an investigation by the Internal Revenue Service’s Criminal Investigation function. Criminal Investigation investigates potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law.
Release No. 01-120
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