Adult business executives admit filing false tax returns

LOS ANGELES — Two executives of an adult entertainment company with offices in Santa Fe Springs and Cerritos have pleaded guilty to charges of falsifying tax returns, authorities announced Tuesday.
Oscar Macias, 36, of Anaheim pleaded guilty Monday in federal court to a county of filing a false individual tax return, U.S. Department of the Treasury Special Agent Linda Lowery said.
His former business associate, 34-year-old Catherine Shihad, pleaded guilty Sept. 20 to a charge of filing a false tax return on behalf of the business she and Macias worked for — Universal Media Management, officials said.
“During the 2003-2005 tax years, UMM’s business consisted of providing live, adult entertainment to adult customers for which the customers made cash payments to UMM,” Lowery said.
“Macias received income from UMM that he did not report on his federal income tax returns,” she added. The estimated lost tax revenue totaled about $33,000.
In Shihad’s case, “Shihad caused the tax preparer to prepare a federal corporate income tax return for the fiscal year ending September 30, 2004 which was false,” Lowery said. “UMM’s net income was substantially more than the amounts reported on the 2004 tax return. The estimated lost tax revenue totalled about $140,000.
As part of their plea agreements, Macias and Shihad both agreed to file amended returns, correctly reporting previously omitted income, officials said.
Macias and Shihad each face a maximum of three years in federal prison and a fine of $250,000 at sentencing. Macias is scheduled to be sentenced Jan. 9, while Shihad is scheduled to be sentenced Nov. 28.
The investigation was carried out by the IRS – Criminal Investigation, along with the United States Attorney’s Office for the Central District of California.

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