An Orange County house flipper who admitted to misappropriating investor funds to fuel a lavish lifestyle was sentenced Monday to 18 months behind bars for concealing his income from the Internal Revenue Service.
Scott Weidenhammer, 52, was also sentenced to three years of supervised release after he gets out of federal prison and was ordered to pay $220,850 in fines and restitution, according to the U.S. Attorney’s Office.
U.S. District Judge Dale S. Fischer set a July 12 self-surrender date.
The Laguna Hills man pleaded guilty in January to two counts of tax fraud.
According to his plea agreement, between 2010 and 2015, Weidenhammer conducted a “house-flipping” operation by which he would buy, renovate, and sell high-end homes. Promising to use investor funds as working capital for his house-flipping operation, he instead diverted funds back into his bank account for personal use.
During the 2013 and 2014 tax years, Weidenhammer omitted gross receipts from his individual federal income tax return causing a combined tax loss to the government of at least $100,000. He admitted that he failed to report income from the commissions he earned flipping homes along with the diverted investor funds used for personal expenditures.
“Scott Weidenhammer defrauded investors, using the money they invested in his house-flipping business as his own personal piggy bank,” said IRS Special Agent in Charge Ryan L. Korner, adding that such cases bring to justice “those who conceal income and fail to pay their fair share.”
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