Owner Of Bay Area Roofing Company Pleads Guilty To Tax Fraud
SAN FRANCISCO – Tony Pham pleaded guilty in federal court in San Francisco today to filing a false federal income tax return, announced United States Attorney Alex G. Tse and Acting Special Agent in Charge Internal Revenue Service (IRS-CI) Tara Sullivan. The plea was accepted by the Honorable Edward M. Chen, U.S. District Judge.
In pleading guilty, Pham, 51, of San Francisco, admitted he operated High Quality Roofing, a contracting business that provided roofing services throughout the San Francisco Bay area. Pham admitted he received gross receipts of $1,916,128 from High Quality Roofing during 2010 through 2013 that he did not report on his tax returns for those years. Pham also admitted he did not tell his tax return preparer about this income so that the gross receipts would not be reported on his federal income tax returns filed with the IRS. Pham signed his 2010 through 2013 income tax returns under penalty of perjury even though he knew they were false. The total tax loss to the United States for tax years 2010 through 2013 was $369,532.
Pham, was charged by information on June 26, 2018, with three counts of filing false federal income tax returns, in violation of 26 U.S.C. § 7206(1). He pleaded guilty to one count. The remaining two charges will be dismissed at the time of sentencing if Pham complies with the terms of the plea agreement.
Pham is currently released on bond. Judge Chen scheduled Pham’s sentencing hearing for November 14, 2018, at 2:30 p.m. The maximum statutory penalty for a violation of filing a false federal income tax return in violation of 26 U.S.C. § 7206(1) is three years imprisonment and a fine of $250,000, plus restitution if appropriate. However, any sentence 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. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the IRS-CI.