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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of California

FOR IMMEDIATE RELEASE
Monday, October 3, 2016

Former Stanislaus County Resident Pleads Guilty to Obstructing Tax Laws

FRESNO, Calif. — Frank A. Bilan, 68, formerly of Newman, pleaded guilty today to one count of corrupt endeavor to obstruct and impede the administration of the internal revenue laws, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Bilan earned income as a salaried engineer and through his engineering consulting business. Between 2005 and 2009, Bilan received over $900,000 in income from his employment, consulting business, and withdrawals from his retirement accounts. Bilan, however, did not timely file true and accurate tax returns for tax years 2001 through 2009. When the IRS sent correspondence to Bilan regarding past due taxes, Bilan responded by, among other things, attempting to file false purported income tax returns that did not report any of his gross income for 2001 through 2005, and filing a fictitious form that purported to discharge monies owed by him to the IRS.

This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.

“Mr. Bilan intentionally failed to file tax returns with over $900,000 of income,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Once the IRS notified him, he sent in erroneous and fictitious forms in his continued attempt to avoid paying his fair share. These kinds of cases are at the core CI’s mission and we will continue to pursue those who undermine the integrity of the U.S. tax system.”

Bilan is scheduled to be sentenced on March 6, 2017, by U.S. District Judge Lawrence J. O’Neill. Bilan faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Topic(s): 
Tax
Press Release Number: 
1:15-cr-099-LJO
Updated October 3, 2016