A California businessman from Beverly Hills, Haim Jerry Kohen, has pleaded guilty to evading over $1 million in federal and state taxes. Kohen, who owned a business dealing in used clothing, admitted to underreporting or not reporting income on his tax returns for more than a decade. His evasion tactics included diverting cash payments from customers and not reporting rental income from properties he owned.
According to court documents, Kohen diverted cash payments received from a significant customer, keeping the money for himself instead of depositing it into his business account. In one instance, a customer owed Kohen's business over $648,000, and Kohen had the debt repaid directly to him in cash, which was not reported on any tax return. Additionally, Kohen failed to report interest payments received from loans he provided to individuals.
Furthermore, Kohen did not report rental income from two properties he owned in Beverly Hills and Tarzana, California. Despite deeding the Beverly Hills property to family members, Kohen continued to collect rental income and maintained control over the property. The rental income from the Tarzana property was also left unreported.
The tax evasion scheme orchestrated by Kohen resulted in a tax loss of at least $1,196,802 to the IRS and the State of California. As a consequence of his actions, Kohen is set to be sentenced on Oct. 1 and could face a maximum penalty of five years in prison, along with supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Martin Estrada announced the guilty plea, underscoring the seriousness of tax evasion. The case is being investigated by the International Tax and Financial Crimes group of IRS Criminal Investigation, with Senior Litigation Counsel Mark F. Daly and Trial Attorneys Sara E. Henderson and John C. Gerardi from the Tax Division prosecuting the case.