LOS ANGELES– The former chief information officer for the Screen Actors Guild's Producers Pension and Health Plan (PPHP) has pleaded guilty to filing a false tax return in which he failed to report income he received from contractors hired to upgrade the PPHP computer system.
Nader Karimi, 51, of Los Angeles, pleaded guilty Thursday afternoon to one felony count of subscribing to a false tax return.
When he pleaded guilty before United States District Judge Fernando M. Olguin, Karimi admitted lying on his 2008 federal tax return that failed to report $454,666 in income. Over the course of the years 2005 through 2008, Karimi failed to report a total of approximately $711,000 in taxable income, according to his plea agreement.
Karimi was responsible for modernizing PPHP's computer systems, and in that capacity he had the authority to enter into contracts on behalf of PPHP. Over a four-year period, Karimi entered into agreements with vendors that agreed to pay a portion of the money they received from PPHP to a company affiliated with Karimi, Enterprise Technology and Management Services. The payments to ETMS totaled $711,000, and Karimi used the sums for personal expenses while not declaring them as income on his tax returns.
“Individuals entrusted with the pension and health care funds of others must be held to the highest standard of conduct,” said United States Attorney Eileen M. Decker. “The Department of Justice will do everything within its power to bring to justice those who abuse a position of trust for personal gain.”
Judge Olguin is scheduled to sentence Karimi on March 11, 2016, at which time he faces a statutory maximum of three years in federal prison.
Karimi has agreed to file amended tax returns, pay back taxes, and make an additional restitution payment of at least $100,000 to PPHP.
This case is the result of an investigation by the United States Department of Labor – Office of Inspector General, the Labor Department's Employee Benefits Security Administration, IRS Criminal Investigation, and the FBI.
USAO – California, Central Updated November 16, 2015
Central District of California DOJ / 15-131 / November 13, 2015