Rizzo Pleads Guilty to Felony Tax Charges

As presaged in an earlier post, Robert Rizzo has agreed to plead guilty to conspiracy and filing a false federal tax return.  In a plea agreement filed yesterday, the former city manager of Bell, already convicted of state corruption charges, admitted to creating a corporation in order to fraudulently claim tax losses (to offset the gargantuan salary he was paying himself).  His tax preparer, Robert J. Melcher, has pleaded guilty to aiding and abetting Rizzo’s filing of false returns.  The tax fraud cheated the IRS of more than $300,000 for tax years 2006 through 2010.

As part of the plea agreement, Rizzo has agreed to pay all applicable taxes and penalties, which includes a 75% tax fraud penalty.

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