U.S. Department of Justice United States Attorney Northern District of California
11th Floor, Federal Building 450 Golden Gate Avenue, Box 36055 San Francisco, California  94102 FOR IMMEDIATE RELEASE	Tel: (415) 436-7200 Fax: (415) 436-7234

January 16, 2003 The United States Attorney's Office for the Northern District of California announced that David Gainer, 61, was sentenced yesterday to a year and a day in jail for his guilty plea to three counts of making and subscribing false tax returns, in violation of 26 U.S.C. § 7206(1). Mr. Gainer, a resident of the Northern District of California, along with his co-defendant and ex-wife, Sandra Mascarenhas, were indicted by a federal grand jury on March 26, 2001, with three counts of making and subscribing false tax returns for taxable years 1994, 1995 and 1995, in violation of 26 U.S.C. § 7206(1).  Under the plea agreement, Mr. Gainer pled guilty to all counts. In pleading guilty, Mr. Gainer admitted that during the years 1994, 1995, and 1996, he and Ms.  Mascarenhas operated two telemarketing fund raising businesses, June-Berry, Inc., and Fi-Pol, Inc.  Mr. Gainer entered into contracts with various charities pursuant to which they agreed to raise funds for the charities using the telemarketing businesses.  During these years, Mr. Gainer and Ms. Mascarenhas received income from the operation of the telemarketing fund raising businesses that they did not report on their income tax returns.  Mr. Gainer admitted that in making and subscribing their tax returns for these years, they willfully omitted some of the income they received from their operation of the charitable fund raising telemarketing businesses, and did not report the correct amount of taxes due, rendering their tax returns knowingly false.  Mr. Gainer admitted that his actions resulted in a total tax loss of $230,340. Mr. Gainer was sentenced by the Judge Maxine M. Chesney to 12 months and one day in prison, one year of supervised release, and ordered to pay restitution to the IRS.  Mr. Gainer is currently in federal custody and will begin serving his sentence immediately. Mr. Gainer's co-defendant, Sandra Mascarenhas, is scheduled to go to trial on March 24,  2003. The prosecution was the result of a lengthy investigation by agents of the IRS Criminal Investigation Division.  Emily J. Kingston is the Assistant U.S. Attorney who prosecuted the case, with the assistance of Kathy Tat and Stefania Chin. A copy of this press release may be found on the U.S. Attorney's Office's website at www.usdoj.gov/usao/can.  Related court documents and information may be found on the District Court website at www.cand.uscourts.gov or on http://pacer.cand.uscourts.gov. All press inquiries to the U.S. Attorney's Office should be directed to Assistant U.S. Attorney Matthew J. Jacobs at (415)436-7181.