SAN FRANCISCO – Brendan McGrath aka Benny McGrath, pleaded guilty in federal court in San Francisco today to filing a false federal income tax return for the 2006 tax year, United States Attorney Melinda Haag announced.

In pleading guilty, McGrath admitted to owning and operating McGrath Construction, Benny McGrath Construction and Kelly Construction, located in San Francisco during 2006 and 2007, through which he provided general contracting services throughout the San Francisco Bay area.

McGrath admitted that during the 2006 tax year, he received $272,900 in gross receipts from his construction business. McGrath failed to report his construction business and the gross receipts he derived from that business on his 2006 federal income tax return.

McGrath, 32, of San Francisco, was indicted by a federal Grand Jury on March 17, 2011. He was charged with two counts of failure to file federal income tax returns for the 2004 and 2005 tax years in violation of 26 U.S.C. §7203 and two counts of filing a false federal income tax return for 2006 and 2007 in violation of 26 U.S.C. §7206(1). Under the plea agreement, he pled guilty to one count.

The sentencing of McGrath is scheduled for Oct. 4, 2012, before Judge Jeffrey White in San Francisco. The maximum statutory penalty for filing a false federal income tax return in violation of 26 U.S.C. §7206(1) is three years and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Cynthia Stier is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of an investigation by the Internal Revenue Service.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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