Los Angeles County Man Pleads "No Contest" to Felony Tax Evasion - News Release - 2000
Date: May 8, 2000
Customer and Taxpayer Services Division
Los Angeles County Man Pleads "No Contest" to Felony Tax Evasion
The State Board of Equalization (BOE) announced today that on May 2, 2000, Leonard Goldman, 59, pled "no contest" to three counts of felony sales tax evasion and one felony count of state income tax evasion.
Goldman and his wife, Judith Frese Goldman, 51, operated Halloween Adventure Shops (with fifteen locations throughout Southern California) from January 1, 1992 through December 31, 1997. A joint investigation by the BOE and the California Department of Justice (DOJ) alleged that the Goldmans had evaded over $420,000 in collected sales taxes through the filing of falsified tax returns. The investigation also alleged that the Goldmans failed to report over $1,900,000 in taxable income for state income tax purposes.
The terms of the plea agreement are as follows:
On of before November 15, 2000, Goldman is to pay to the BOE $225,000 (Goldman had already made a payment of $315,000 on January 31, 2000). A payment of $135,000 is to be made to the Franchise Tax Board.
On or before March 23, 2001, Goldman is to pay to the BOE a final payment of $225,000. A payment of $135,000 is to be made to the Franchise Tax Board.
Goldman was sentenced to two years in state prison, reduced to 180 days in county jail beginning November 15, 2000. This reduction in jail time is contingent on Goldman making the above payments.
Goldman was also placed on formal probation for four years, beginning May 2, 2000. During this time he is subject to the normal terms of felony probation, including obeying all the laws of the United States and State of California and being subject to search and seizure without a warrant.
Charges against Julie Goldman have been dropped, contingent on compliance by the Goldmans of the above terms.