Long Beach-based lobbyist Carl A. Kemp plead guilty to making a false tax return for the year 2012.
Kemp entered the plea before U.S. District Judge Philip S. Gutierrez who set sentencing for Nov. 7. Kemp is facing up to three years in federal prison, according to officials.
Kemp, whose clients included illegal marijuana stores in Long Beach, has been charged with filing a false tax return and failing to report more than three-quarters of a million dollars in income over a six-year period.
Kemp, 43, of Long Beach, the owner of the public relations firm The Kemp Group, was charged with subscribing to a false tax return for the year 2012.
“For years, Mr. Kemp failed to accurately report his income to the IRS, going so far as reporting zero taxable income for 2012 when his business brought in more than $200,000,” said United States Attorney Eileen M. Decker. “Everyone, no matter what business they are engaged in, has a responsibility to fully report their income on their income tax returns.”
In a plea agreement, Kemp agreed to plead guilty to the tax offense.
As part of the plea agreement, Kemp admits receiving a total of $754,783 in income that he failed to report on his taxes for the years 2007 through 2012. Kemp admits that he owes the Internal Revenue Service a total of $210,661 to cover the back taxes due for those six years, as well as a civil fraud penalty.
“As admitted by Kemp in documents filed with the court today, all forms of income are taxable, including cash payments received from illegal marijuana dispensaries and fees paid for lobbying services,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t.”
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