A Long Beach-based lobbyist, whose clients included illegal marijuana stores in the city, has agreed to plead guilty to filing a false tax return and failing to report more than three-quarters of a million dollars in income over a six-year period, court papers obtained today show.
Carl A. Kemp, 43, owner of the public relations firm The Kemp Group, was charged Tuesday in Los Angeles with subscribing to a false tax return for the year 2012, according to the U.S. Attorney’s Office.
As part of his plea agreement, Kemp admits receiving a total of $754,783 in income that he failed to report on his taxes for the years 2007 through 2012.
Kemp also admits that he owes the Internal Revenue Service $210,661 to cover the back taxes due for those six years, as well as a civil fraud penalty, according to the document.
“All forms of income are taxable, including cash payments received from illegal marijuana dispensaries and fees paid for lobbying services,” stated Anthony J. Orlando, IRS Criminal Investigation acting special agent in charge. “Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t.”
The charge of subscribing to a false tax return carries a maximum penalty of three years in federal prison.
Kemp will be directed by the court to appear for an arraignment in this case, likely later this month, prosecutors noted.
— Wire reports
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