A West Los Angeles resident who earned more than $3 million over a three-year period while working in Dubai admitted to evading paying federal taxes by failing to report his income to IRS.
Fallah Alfallah, 49, who resides in the City of Los Angeles adjacent to Beverly Hills, pleaded guilty to the felony offense Wednesday afternoon.
U.S. District Judge Dolly M. Gee scheduled sentencing for Feb. 7.
Alfallah is facing up to five years in prison. Alfallah agreed to pay restitution of $933,492 to the IRS.
According to a plea agreement, Alfallah is a naturalized U.S. citizen who lived in Dubai during the years 2008 through 2010.
While working as an investment advisor for the Bahrain-based Unicorn Investment Bank, Alfallah admitted that his salary and bonuses totaled $1.5 million in 2008, $830,691 in 2009, and $658,794 in 2010.
Although he earned more than $3 million during those three years and despite being advised by his tax preparer that he had a legal obligation to report his overseas income to the IRS, Alfallah did not file income tax returns with the IRS.
By pleading guilty, Alfallah admitted that he intended to avoid paying taxes on this income and took affirmative steps to evade the tax due for those three years.
As a result of Alfallah’s conduct, the government sustained losses of $933,492.
Alfallah pleaded guilty to one count of tax evasion related to his unpaid taxes for 2009.
The investigation into Alfallah was conducted by IRS Criminal Investigation, which received a tip through the IRS Whistleblower Program, which offers compensation to individuals who “blow the whistle” on people who fail to pay the taxes that they owe.
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