Santa Barbara Criminal Defense Attorney Sentenced to 2 Years in Federal Prison for Failing to Report over $3.5 Million in Income to IRS

          LOS ANGELES – A Santa Barbara-based criminal defense attorney was sentenced today to 24 months in federal prison for willfully failing to file tax returns for several years and failing to pay a total of $679,958 in income tax to the Internal Revenue Service.

          Darryl W. Genis, 60, was sentenced this afternoon by United States District Judge Dale S. Fischer. In addition to the prison term, Judge Fischer ordered Genis to pay restitution of $679,958 to the IRS.

          Genis pleaded guilty in October to three misdemeanor counts of willfully failing to file tax returns for his law practice for the years 2009 through 2011. In the plea agreement that led to his guilty pleas, Genis admitted that he failed to pay income taxes for a total of eight years.

          According to court documents, for the tax years 2009 through 2011, Genis earned income from his law practice, he knew that his gross income for each year exceeded the threshold requiring him to file an income tax return, but he failed to file the required tax returns with the IRS.

          Over the course of eight years – 2005 through 2012 – Genis failed to report $3,590,185 of income and he failed to pay a total of $679,958 in income taxes.

          “During the years he was not paying his taxes, this defendant purchased a multimillion-dollar home in Santa Barbara for his family, which allowed him to rent a different million-dollar residence that he also owned,” said United States Attorney Eileen M. Decker. “Demonstrating his total disregard for honoring his tax responsibilities, in the span of just one weekend in 2009, he gambled away tens of thousands of dollars that easily exceeded the taxes he owed that year. Attorneys are no different than any other citizen; they are expected to follow the law.”

          “Mr. Genis is a well-educated criminal defense attorney who knew of his responsibility to file his tax returns and pay the taxes owed,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “Instead he chose to not file his tax returns or pay his taxes. He’ll now pay for his decision with the loss of his liberty and a period of incarceration.”

          In sentencing papers filed with the court, prosecutors noted that Genis was a respected member of the Santa Barbara community and he certainly knew that his conduct related to his failure to pay taxes was criminal.

          Judge Fischer ordered Genis to begin serving his sentence on or before May 15.

          The investigation into Genis was conducted by IRS Criminal Investigation in Camarillo. The case was prosecuted by Assistant United States Attorneys Valerie L. Makarewicz and Benjamin L. Tompkins of the Tax Division.