| FOR IMMEDIATE RELEASE October 30, 2008 WWW.USDOJ.GOV/USAO/CAN |
SAN FRANCISCO – United States Attorney Joseph P. Russoniello and IRS-CI Special Agent in Charge Scott O’Briant announced that Rene Medina, former owner of Lucky Chances Casino in Colma, was sentenced to 15 months in prison and ordered to pay $973,841 in income taxes which he has already paid.
Mr. Medina pleaded guilty on October 18, 2007. According to the plea agreement, Mr. Medina admitted that from July 7, 1999 through June of 2007, he was the sole shareholder of Lucky Chances, a casino/card club in Colma, California. Lucky Chances filed U.S. Income Tax Returns for a Subchapter S Corporation (Form 1120S) with the IRS for the tax years 1999, 2000, and 2001. In filing as a Subchapter S Corporation, Lucky Chances paid no corporate income tax but its ordinary income was reported by Mr. Medina as a shareholder on his personal income tax returns.
Mr. Medina also admitted that during the years 1999, 2000 and 2001, he evaded payment of his federal income taxes by causing Lucky Chances to make payments for personal expenses and fictitious business expenses in the amount of $1,129,901. These payments were expensed by Lucky Chances on its books, records and tax returns as ordinary and necessary business expenses. These expenses reduced the amount of income tax Mr. Medina reported and paid on his personal income tax returns. The personal expenses included furniture and redecorating services for his personal residence in Atherton. The fictitious expenses also included service fees paid to Casino Players Promotions, a company which provided professional players who could match high play amounts by other players.
Assistant United States Attorney Cynthia Stier is prosecuting the case with the assistance of Financial Fraud Investigator Phillip Villanueva. These charges are the result of a lengthy investigation by the Internal Revenue Service Criminal Investigation, Special Agent Maridehl Tablac.
Further Information:
Case #:CR-06-0144-JSW
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