LOS ANGELES– A Long Beach-based lobbyist, whose clients included illegal marijuana stores in Long Beach, was sentenced today to one year and one day in federal prison for failing to report to the IRS more than $750,000 in income he received over a six-year period.
Carl A. Kemp, 43, of Long Beach, the owner of the public relations firm and a one-time candidate for the Long Beach City Council, was sentenced by United States District Judge Philip S. Gutierrez, who also ordered the defendant to pay $210,661 in restitution to the Internal Revenue Service to cover his back taxes.
Kemp pleaded guilty in July to subscribing to a false tax return for the year 2012. On his federal tax return for that year, Kemp reported that he had no taxable income, when his business took in approximately $180,000.
“For years, this defendant engaged in criminal conduct designed to conceal his receipt of three-quarters of a million dollars – much of which was cash paid by illegal marijuana businesses,” said United States Attorney Eileen M. Decker. “Failure to fully report income on federal tax returns is a felony offense that can bring prison as well as significant monetary penalties.”
In a plea agreement filed in court, Kemp admitted receiving a total of $754,783 in income that he failed to report on his taxes for the years 2007 through 2012.
“For six consecutive years, Mr. Kemp, a well-educated professional with a successful business, elected to circumvent the law and cheat on his taxes,” stated Acting Special Agent in Charge for IRS Criminal Investigation, Anthony J. Orlando. “As the punishment handed down today reflects, no matter what your career or circle of influence, all of us are obligated to comply with our nation's tax laws.”
The case against Kemp was investigated by IRS Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section.
USAO – California, Central Updated November 7, 2016
Central District of California DOJ / 16-273 / November 7, 2016