January 17, 2002

CHINO HILLS WOMAN CONVICTED OF FILING
FALSE INCOME TAX RETURNS

 A Chino Hills woman has been convicted of two counts of filing false federal income tax returns that fraudulently claimed deductions that reduced her tax liability.
 Lorna Faith Kalawan, 45, was found guilty last Friday afternoon by a federal court jury that heard evidence for approximately three days.
 The evidence introduced at showed that Kalawan claimed false business expenses on her individual federal income tax returns for the years 1994 and 1995. The false expenses that she claimed for the two years amount to approximately $140,000. As a result of the false tax return, Kalawan reduced her tax liability by approximately $50,000.
 During 1994 and 1995, Kalawan worked as a telemarketer where she did not incur any business expenses.
 Kalawan is scheduled to be sentenced by United States District Judge Terry A. Hatter Jr. on March 25. At sentencing, Kalawan faces a maximum penalty of six years in federal prison and fines of up to $200,000.
 This case is the product of an investigation by IRS Criminal Investigation.

 Release No. 01-009

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