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Department of Justice Logo 

U.S. Department of Justice

United States Attorney
Northern District of California

 

11th Floor, Federal Building
450 Golden Gate Avenue, Box 36055
San Francisco, California  94102

FOR IMMEDIATE RELEASE
 

 

Tel: (415) 436-7200
Fax: (415) 436-7234

 

May 20, 2004

The United States Attorney's Office for the Northern District of California announced today that Randolph George formerly of San Francisco and now living in Manchester, Massachusetts (a suburb of Boston) was sentenced yesterday to 15 months in prison.  The sentence was handed down by U.S. District Court Judge Maxine M. Chesney following a jury verdict convicting Mr. George of two counts of filing false tax returns in violation of 26 of U.S.C. § 7206(1) and one count of failing to file a tax return in violation of 26 U.S.C. § 7203.

Mr. George, age 57, and a former senior accountant at a large CPA firm, was indicted by a federal grand jury on August 30, 2001.  He was charged with filing false tax returns for 1991 and 1992, and failure to file a tax return for 1993.  After deliberating one day, the jury found the defendant guilty of all charges.

In the early 1990s, Mr. George was hired to serve as a receiver for radio stations in the Western United States that were experiencing financial difficulties.  As a receiver, Mr. George managed all aspects of the radio stations including exercising control over the business bank accounts and accounting records.  The radio stations Mr. George managed included KRTY in Los Gatos, CA; KKIS in Concord, CA; KXGO in Arcata, CA; and KHIT/KIIQ in Reno, NV.  The indictment alleged that Mr. George did not report all business income on his 1991 and 1992 income tax returns.  The evidence showed that Mr. George was paid receiver fees during 1991 and 1992 in the amounts of $90,001.42 and $125,432.66, respectively, which he did not report on his tax returns for those years.

During 1993, in addition to serving as a receiver for radio stations, Mr. George also managed a Walnut Creek paging company known as Tempo Personal Communication.  The evidence showed that Mr. George was paid receiver fees totaling $154,595 in 1993; management fees with respect to Tempo Communications in the amount of $62,955; and other income in the amount of $25,000.  Notwithstanding the receipt of $242,550 in business income for 1993, Mr. George never filed an income tax return for that year.

Judge Chesney sentenced the defendant to 15 months in federal prison, a fine of $20,000, restitution of $70,000, as well as a one year period of supervised release.  The defendant will begin serving the sentence on July 21, 2004.

The conviction is the result of a referral by the IRS Examination Division for further investigation to the IRS Criminal Investigation Division.  Mr. George's fraud was uncovered when a revenue agent found copies of income tax returns different from those filed with the IRS that had been submitted by Mr. George to financial institutions in conjunction with loan applications.  David Denier is the Assistant U.S. Attorney who prosecuted the case with the assistance of Kathy Tat.

A copy of this press release may be found on the U.S. Attorney's Office's website at www.usdoj.gov/usao/canRelated court documents and information may be found on the District Court website at www.cand.uscourts.gov or on http://pacer.cand.uscourts/gov.

All press inquiries to the U.S. Attorney's Office should be directed to Assistant U.S. Attorney Matthew J. Jacobs at (415) 436-7181.

mattmed