March 12, 2002
SAN FERNANDO VALLEY CONTRACTOR ADMITS TAX VIOLATION;
I.R.S. PREVIOUSLY SEIZED ONE-HALF MILLION DOLLARS
A Chatsworth man has pleaded guilty to a felony tax charge in
connection with his 1994 and 1995 federal income tax returns that failed
to report a substantial amount of income.
Gary Lee Morris, 60, pleaded guilty Monday afternoon to willfully
subscribing to a false tax return.
Morris is a general contractor who admitted that he created false
books and accounting records. Morris requested that his clients make their
payments to him by writing multiple checks on the same day. He would then
record only one of the checks on his books and records, and he would convert
the other checks to cash. The incomplete books and records were then
used to create Morris’ tax returns.
In a plea agreement with the government, Morris admitted to substantial
understatements of the gross receipts for his contracting business. At
sentencing, the government will contend that Morris understated his gross
receipts by more than $200,000 for the tax years 1994 and 1995.
Morris is scheduled to be sentenced on July 29 by United States
District Judge Nora M. Manella. At sentencing, Morris faces a maximum sentence
of three years in federal prison.
On January 24, 2002, United States District Judge Dickran Tevrizian
signed an order resolving issues arising from the seizure of approximately
$1.1 million that was in bank accounts held in various names. The Internal
Revenue Service contended that the accounts were originally funded by Morris.
Prior to Judge Tevrizian’s order, Morris disclaimed any interest in the
accounts, although others, including his fiancé, claimed interests.
Pursuant to a stipulation executed by the government and the others who
claimed an interests in the funds, the government retained $505,000.
This criminal case was investigated by IRS-Criminal Investigation
and the Federal Bureau of Investigation.
Release No. 02-048
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