A federal judge sentenced a lobbyist, whose clients included illegal marijuana stores in Long Beach, to one year in federal prison for failing to report to the IRS more than $750,000 in income he received over a six-year period, according to officials.
Carl A. Kemp, 43, of Long Beach, the owner of the public relations firm and a one-time candidate for the Long Beach City Council, was sentenced by United States District Judge Philip S. Gutierrez.
The judge ordered Kemp to pay $210,661 in restitution to the Internal Revenue Service to cover his back taxes.
Kemp plead guilty in July to subscribing to a false tax return for the year 2012. On his federal tax return for that year, Kemp reported that he had no taxable income, when his business took in approximately $180,000.
Kemp posted an apology on his Facebook page, saying, “I made some irresponsible mistakes and I am prepared to deal with the consequences. I regret the impact that those mistakes are having on my family, however, I never misrepresented anyone that trusted me enough to advocate for their issues.”
“For years, this defendant engaged in criminal conduct designed to conceal his receipt of three-quarters of a million dollars – much of which was cash paid by illegal marijuana businesses,” said U.S. Attorney Eileen M. Decker. “Failure to fully report income on federal tax returns is a felony offense that can bring prison as well as significant monetary penalties.”
In a plea agreement filed in court, Kemp admitted receiving a total of $754,783 in income that he failed to report on his taxes for the years 2007 through 2012.
“For six consecutive years, Mr. Kemp, a well-educated professional with a successful business, elected to circumvent the law and cheat on his taxes,” stated Acting Special Agent in Charge for IRS Criminal Investigation, Anthony J. Orlando. “As the punishment handed down today reflects, no matter what your career or circle of influence, all of us are obligated to comply with our nation’s tax laws.”
The FBI and IRS investigated this case.