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Press Release

Arcadia Residents Pleads Guilty To Filing False Tax Return

For Immediate Release
U.S. Attorney's Office, Northern District of California

SAN FRANCISCO – Anthony Arroyo and Maria Maybelene Arroyo pleaded guilty in federal court in San Francisco today to filing false tax returns, announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.  The plea was accepted by the Honorable William H. Orrick, U.S. District Judge, following the June 16, 2017, filing in federal court charging the Arroyos with filing false tax returns. 

According to the plea agreement, the Arroyos, residents of Arcadia, Calif., filed joint federal income tax returns for 2006 through 2010 that underreported their income.  Specifically, the Arroyos worked together to hide more than $690,000 of the couple’s income from the Internal Revenue Service.  The defendants concealed the income from the individual who prepared their tax returns and then signed and caused to be filed tax returns which omitted the income.

The Arroyos were both charged in an information with a single count of filing false tax returns, in violation of 26 U.S.C. § 7206(1).  Pursuant to today’s agreement, the both defendants pleaded guilty to that count.  The Arroyos both are scheduled to appear Judge Orrick on November 30, 2017, at 1:30 PM for sentencing.
The maximum penalty for a violation of 26 U.S.C. § 7206(1), is three years’ imprisonment and a fine of $250,000.  In addition, a fine and a term of supervised release may be imposed; however, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Assistant U.S. Attorneys Gary Fry and Michael G. Pitman are prosecuting the case.  The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation. 

Updated September 5, 2017