A Long Beach-based lobbyist, whose clients included illegal marijuana stores in the city, pleaded guilty Monday to filing a false tax return and failing to report more than $750,000 in income over a six-year period.
Carl A. Kemp, owner of the public relations firm The Kemp Group and a former Long Beach City Council candidate, was charged last month in Los Angeles with subscribing to a false tax return for the year 2012. The count carries a maximum penalty of three years in federal prison, according to the U.S. Attorney’s Office.
Kemp, 43, admitted in his plea agreement to receiving a total of $754,783 in income that he failed to report on his taxes for the years 2007 through 2012.
Kemp also admitted 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,” said 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.”
U.S. District Judge Philip S. Gutierrez set a Nov. 7 sentencing date.
When he agreed last month to plead guilty, Kemp posted an apology on his Facebook page, saying, “I made some irresponsible mistakes and I am prepared to deal with the consequences. I regret the impact that those mistakes are having on my family, however, I never misrepresented anyone that trusted me enough to advocate for their issues.”
–City News Service