HUSBAND AND WIFE ARRESTED FOR FAILING TO REPORT OVER $16 MILLION IN TAX RETURNS ON PERSONAL AND CORPORATE INCOME

Case # 15CF0695

June 4, 2015

HUSBAND AND WIFE ARRESTED FOR FAILING TO REPORT OVER $16 MILLION IN TAX RETURNS ON PERSONAL AND CORPORATE INCOME

SANTA ANA – A husband and wife were arrested today on charges of failing to report over $16 million in tax returns on personal and corporate income. Charles Edward Dotson, 52, and Paulette Lyn Dotson, 50, both of Laguna Hills, were each charged today with four felony counts of willful failure to file or make fraudulent tax returns and sentencing enhancements for aggravated white collar crime over $500,000. If convicted, they each face a maximum sentence of 10 years in state prison. They are being held on $600,000 bail and are scheduled to be arraigned tomorrow, June 5, 2015, at a time and location to be determined.

On four occasions between April 15, 2009, and April 15, 2011, the defendants are accused of failing to timely file their California Resident Income Tax Returns for the tax years in 2008, 2009, and 2010. The defendants are accused of failing to file personal taxable income in excess of $6.2 million from 2008 to 2010.

They are also accused of owning Sterling Appraisals, Inc., a real estate appraising entity, earning nearly $10 million from Dec. 1, 2009, through Nov. 30, 2010, and failing to file a California Corporation Franchise or Income Tax Return for their business during the 2010 fiscal year. The defendants are accused of evading the payment of corporate income taxes in excess of $45,000 and personal income taxes in excess of $500,000.

The State of California Franchise Tax Board investigated this case and arrested the defendants at their Laguna Hills home this morning.

Deputy District Attorney George McFetridge of the White Collar Crime Team is prosecuting this case

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