Beverly Hills Resident Admits to Concealing Income From IRS
Haim Jerry Kohen, a resident of Beverly Hills, California, admitted guilt today to charges of evading more than $1 million in federal and state taxes, according to court documents and statements made in court.
Kohen, who owned and operated a business specializing in the buying and selling of bulk quantities of used clothing, confessed to underreporting or failing to report income on his tax returns over a span of more than ten years. His attempts to conceal income from the IRS included diverting funds from his business to himself and conducting transactions in cash.
Court records reveal that Kohen diverted cash payments from a major customer, neglecting to deposit the funds into his business account and instead keeping the cash for personal use. Neither the diverted funds nor income from a promissory note executed with the same customer were reported on any tax returns. Kohen also failed to disclose interest payments received from unreported loans.
Furthermore, Kohen neglected to report rental income from two properties he owned in Beverly Hills and Tarzana, California. Despite transferring ownership of the Beverly Hills property to family members, he continued to collect rental income and exerted control over the property. Income from the Tarzana property was also left unreported.
The total tax loss caused by Kohen’s actions amounts to at least $1,196,802, affecting both the IRS and the State of California.
Kohen is set to be sentenced on Oct. 1, facing a maximum penalty of five years in prison, along with supervised release, restitution, and monetary penalties. The final sentence will be determined by a federal district court judge, taking into account the U.S. Sentencing Guidelines and other statutory factors.
The announcement was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Martin Estrada of the Central District of California.
The International Tax and Financial Crimes group of IRS Criminal Investigation is leading the investigation.
Prosecution of the case is handled by Senior Litigation Counsel Mark F. Daly, along with Trial Attorneys Sara E. Henderson and John C. Gerardi of the Tax Division.
