LOS ANGELES– A Long Beach-based lobbyist, whose clients included illegal marijuana stores in Long Beach, has been charged with filing a false tax return and failing to report more than three-quarters of a million dollars in income over a six-year period.

Carl A. Kemp, 43, of Long Beach, the owner of the public relations firm The Kemp Group, was charged yesterday with subscribing to a false tax return for the year 2012.

“For years, Mr. Kemp failed to accurately report his income to the IRS, going so far as reporting zero taxable income for 2012 when his business brought in more than $200,000,” said United States Attorney Eileen M. Decker. “Everyone, no matter what business they are engaged in, has a responsibility to fully report their income on their income tax returns.”

In a plea agreement also filed yesterday, Kemp agreed to plead guilty to the tax offense. As part of the 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 admits that he owes the Internal Revenue Service a total of $210,661 to cover the back taxes due for those six years, as well as a civil fraud penalty.

“As admitted by Kemp in documents filed with the court today, all forms of income are taxable, including cash payments received from illegal marijuana dispensaries and fees paid for lobbying services,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “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 statutory 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.

The case against Kemp was investigated by IRS Criminal Investigation and the Federal Bureau of Investigation.

USAO – California, Central

Topic: Financial Fraud            Tax Updated June 8, 2016

Central District of California DOJ / 16-127 / June 08, 2016