A Laguna Hills couple who run a real estate appraisal company were arrested Thursday on charges of failing to pay about $600,000 in taxes on $16 million in allegedly unreported corporate and personal income.

Charles Edward Dotson, 52, and his wife, Paulette Lyn Dotson, 50, were arrested on four felony counts of failing to file tax returns, with sentencing enhancements for aggravated white collar crime surpassing $500,000. The warrant was issued in April.

The Dotsons were being held in Orange County Jail in lieu of $600,000., according to records.

The two are accused of failing to report about $9.9 million in corporate income and about $6.2 million in personal income, according to Deputy District Attorney George McFetridge. The Dotsons owe about $600,000 in taxes, according to McFetridge.

They could face up to 10 years in prison if they are convicted at trial, the prosecutor said.

The two are accused of failing to file state tax returns in time for 2008, 2009, and 2010.

The Dotsons own Sterling Appraisals, Inc.

— City News Service

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