Robert Rizzo, who came to embody pervasive corruption in Bell
when it was revealed in 2010 that he was making a salary of
almost $800,000, now faces a maximum of eight years in prison.
Rizzo, 59, admitted that he created a corporation to
fraudulently claim losses on his income tax return, the U.S.
Attorney's Office for the Central District of California said in
a press release.
The fraud allowed the Torrance, California resident to reduce
his tax liability on his income from Bell.
Rizzo pleaded guilty to two felony charges: conspiracy and
filing a false federal income tax return with the Internal
Revenue Service.
Rizzo was helped by his tax preparer, Robert Melcher, who
previously pleaded guilty to aiding and abetting the filing of a
false tax return, according to the press release.
In the plea agreement, Rizzo admitted that he used the
corporation he created to finance more than $80,000 in personal
expenses in 2009 and $120,000 in construction work on his
residence in Huntington Beach in 2010.
"Pursuing public servants who corruptly endeavor to circumvent
the tax laws to fund their lavish lifestyles is a top priority"
for IRS criminal investigators, Richard Weber, chief of the
IRS's criminal investigation unit, said in a statement.
The fraud cost the IRS more than $300,000 for 2006 through 2010.
Rizzo has agreed to file amended tax returns for those years and
pay additional taxes and penalties.
Rizzo's plea comes just more than two months after he abruptly
pleaded no contest to state charges ranging from perjury to
misappropriating public funds, a week before jury selection was
set to begin in a high-profile public corruption trial at Los
Angeles County Superior Court
James Spertus, Rizzo's lawyer, did not immediately return a call
seeking comment.
In October, however, he told Reuters, "Mr. Rizzo wants to take
responsibility for his conduct, wants to save the people of
California and the United States the costs and expenses of
lengthy jury trials during difficult financial times when courts
have limited resources, and wants to complete his sentences and
return to his family as soon as possible with his troubles
behind him."
(Reporting by Bernard Vaughan in
New York; editing by Cynthia Osterman)
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