Debra W. Yang
United States Attorney
Central District of California
United States Courthouse
312 North Spring Street
Los Angeles, California 90012
April 22, 2005
Thom Mrozek (213) 894-6947
Los Angeles, CA - An attorney who served as mayor of the City of Azusa from 1994 to 1997 and as a member of the Azusa City Council for four years prior to that was convicted today of subscribing to a false tax return for failing to report $200,000 in income.
Stephen J. Alexander, 49, of Azusa, was found guilty of the felony charge that carries a potential penalty of three years in federal prison. Alexander was convicted by a federal court jury in Los Angeles that heard about one day of evidence.
The tax charge stemmed from Alexander's involvement in more than $1.5 million in monetary transactions in 1997 and his admitted retention of $200,000 of those funds as a "commission" he claimed he had earned for performing services involving the funds.
From 1999 to 2000, Alexander was one of several defendants in a civil lawsuit brought by Smith Barney and others for recovery of the funds. During that lawsuit, Alexander admitted to retaining $200,000 of the more than $1.5 million transferred to him and further asserted, under oath, that he believed he was entitled to what he claimed was a $200,000 fee. Alexander also admitted to preparing a receipt for the $200,000.
Alexander's 1997 tax return claimed he received only $14,885 in income.
Alexander is scheduled to be sentenced by United States District Judge William J. Rea on June 27.
The case was investigated by IRS-Criminal Investigation Division. The United States Postal Inspection Service participated in this investigation.
Release No. 05-061
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