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Report to IRS Whistleblower Program Leads to Guilty Plea from L.A. Man who Failed to Report to IRS over $3 Million in Overseas Income

Posted by Fay Arfa | Oct 27, 2017 | 0 Comments

LOS ANGELES – A West Los Angeles resident who earned more than $3 million over a three-year period while working in Dubai has pleaded guilty to a federal tax evasion charge for failing to report this income to the Internal Revenue Service.

Fallah Alfallah, 49, who resides in the City of Los Angeles adjacent to Beverly Hills, pleaded guilty to the felony offense yesterday afternoon before United States District Judge Dolly M. Gee.

According to a plea agreement filed in this case, Alfallah is a naturalized United States citizen who lived in Dubai during the years 2008 through 2010 while working as an investment advisor for the Bahrain-based Unicorn Investment Bank. Alfallah admitted that his salary and bonuses totaled $1,512,557 in 2008, $830,691 in 2009, and $658,794 in 2010.

Although he earned more than $3 million during those three years and despite being advised by his tax preparer that he had a legal obligation to report his overseas income to the IRS, Alfallah did not file income tax returns with the IRS. By pleading guilty, Alfallah admitted that he intended to avoid paying taxes on this income and took affirmative steps to evade the tax due for those three years.

As a result of Alfallah's conduct, the government sustained losses of $933,492.

Alfallah pleaded guilty to one count of tax evasion related to his unpaid taxes for 2009.

The investigation into Alfallah was conducted by IRS Criminal Investigation, which received a tip through the IRS Whistleblower Program, which offers compensation to individuals who “blow the whistle” on people who fail to pay the taxes that they owe.

Alfallah is scheduled to be sentenced by Judge Gee on February 7, 2018. The statutory maximum sentence he can receive is five years in federal prison. Alfallah has agreed to pay restitution of $933,492 to the IRS.

This case is being prosecuted by Assistant United States Attorneys Charles Parker and Robert F. Conte of the Tax Division.

Component(s): USAO – California, Central

Contact: Thom Mrozek Spokesperson/Public Affairs Officer United States Attorney's Office Central District of California (Los Angeles) 213-894-6947

Press Release Number: 17-191 Updated October 26, 2017

Central District of California DOJ / 17-191 / October 26, 2017

About the Author

Fay Arfa

Fay Arfa has the distinction of being Certified as a Specialist in two separate areas of law – Criminal Law as well as Appellate Law – by the California State Bar, Board of Specialization. The National Board of Trial Advocacy has also awarded her a board Certification in Criminal Trial Advocacy. ...


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