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March 14, 2003 The United States Attorney's Office for the Northern District of California announced that Ralph Joseph Small, 54, of Lafayette, California, was indicted yesterday by a federal grand jury on two counts of income tax evasion in violation of 26 U.S.C. § 7201 and four counts of making and subscribing false income tax returns in violation of 26 U.S.C. § 7206(1). According to the indictment, Mr. Small is alleged to have made an individual income tax return for the calendar year 1996, which was filed with the Internal Revenue Service and verified by Mr. Small under penalties of perjury, which he knew to be false in that he reported gross income in an amount less than he actually received. Mr. Small also is alleged to have attempted to evade $137,680 in income tax for the calendar year 1997 and $192,057 in income tax for the calendar year 1998 by causing to be prepared and signing false income tax returns which were filed with the Internal Revenue Service and which omitted $355,742 and $493,976 of taxable income for 1997 and 1998, respectively. Finally, Mr. Small is alleged to have made corporation income tax returns for Neuro Diagnostics Associates, Inc. for the calendar years 1996, 1997 and 1998, which were filed with the Internal Revenue Service and verified by him under penalties of perjury, and which he knew to be false in that they claimed deductions for his personal expenses, as the corporation's 100 percent shareholder, which were not deductible by the corporation. The maximum statutory penalty for each count in violation of 26 U.S.C. § 7201 is five years and a fine of $250,000, and for each count in violation of 26 U.S.C. § 7206(1) is three years and a fine of $250,000. However, any sentence following conviction would be dictated by the Federal Sentencing Guidelines, which take into account a number of factors, and would be imposed in the discretion of the Court. An indictment simply contains allegations against an individual and, as with all defendants, Mr. Small must be presumed innocent unless and until convicted. Mr. Small's initial appearance in federal court has not yet been scheduled. The prosecution is the result of a three year investigation by agents of the Internal Revenue Service. David L. Denier is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kathy Tat. A copy of this press release may be found on the U.S. Attorney's Office's website at www.usdoj.gov/usao/can. Related court documents and information may be found on the District Court website at www.cand.uscourts.gov or on http://pacer.cand.uscourts/gov. All press inquiries to the U.S. Attorney's Office should be directed to Assistant U.S. Attorney Matthew J. Jacobs at (415)436-7181.
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