Cement Contractor Family Indicted for Tax Evasion.SAN DIEGO--(BUSINESS WIRE)--June 24, 1998--A Rancho Santa Fe Santa Fe, city, Argentina Santa Fe, city (1991 pop. 341,000), capital of Santa Fe prov., NE Argentina, a river port near the Paraná, with which it is connected by canal. father, mother and daughter were arraigned today on 62 charges of felony state tax evasion The process whereby a person, through commission of Fraud, unlawfully pays less tax than the law mandates. Tax evasion is a criminal offense under federal and state statutes. A person who is convicted is subject to a prison sentence, a fine, or both. and worker's compensation fraud relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Friday's Grand Jury indictment, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Franchise Tax Board (FTB FTB Franchise Tax Board (California; they collect income and sales tax) FTB Family Tax Benefit (Australian welfare assistance) FTB First Time Buyer (housing) ). Dennis L. Russell, 61, owner and operator of Dennis L. Russell Construction Co., a San Diego cement contractor, and his wife Barbara J. Russell, 57, failed to report nearly $300,000 in income for state income taxes for 1994 - 1996. The Russells filed no state income tax returns for 1994 and 1995 despite operating the construction company. In addition to state income tax charges, Russell, along with his daughter Denise L. Russell, 31, are charged with multiple counts of Unemployment Insurance Tax Fraud and Insurance Code violations in evading nearly one million dollars in state withholding and unemployment taxes by underreporting approximately $10 million in wages. The Employment Development Department (EDD Noun 1. EdD - a doctor's degree in education DEd, Doctor of Education doctor's degree, doctorate - one of the highest earned academic degrees conferred by a university ) started the investigation in response to allegations of payroll tax Payroll Tax Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. In most countries, including the U.S., both state and federal authorities collect some form of payroll tax. evasion developed by their Underground Economy Operations Program. FTB investigators became involved as a result of income tax violations discovered during EDD's investigation. A search warrant executed on Russell's home and business in 1997 by members of EDD's Investigation Division turned up business files supporting the Grand Jury indictment. Father and daughter are still in custody pending bail of $500,000 and $100,000 respectively. The mother is out of jail on $25,000 bail. The family is scheduled to stand trial on Aug. 6, 1998. FTB is part of a multi-agency task force created by the San Diego County District Attorney's Office to crack down on the underground economy that includes the EDD, the Department of Insurance and the Department of Industrial Relations.
CONTACT: CA Franchise Tax Board
Jim Shepherd/Denise Azimi, 916/845-4800
http://www.ftb.ca.gov
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