The leader of the largest union in California was arrested on criminal tax charges among other allegations.
One thing leads to another. For Alma Hernandez and her husband Jose Moscoso that means significant allegations of tax crime, embezzlement, perjury, and more. Ms. Hernandez was the executive director of the Service Employees International Union (SEIU) California, a position she had held for 11 years. SEIU represents well over one million workers in the U.S. and Canada.
According to the California Attorney General, the couple was charged after an investigation by the Fair Political Practices Commission (FPPC) reveled the couple purportedly embezzled more than $11,000 resulting in charges of grand theft. The money was paid to Mr. Moscoso for food services he did not provide. As well, for attesting to the services provided, Ms. Hernandez is charged with perjury. From there, the accusations of wrongdoing took on new life, including:
- According to the Employment Development Department (EDD), review of the air duct cleaning business run by Mr. Moscoso led to a host of felony charges, including tax evasion. Mr. Moscoso failed to file required quarterly payroll reports between January 2017 and June 2020.
- Along with the payroll tax issue, Mr. Moscoso did not pay over employment taxes for unemployment insurance, employee training, and disability training. Beyond that, no employment tax returns were filed as well.
- Between the years 2014 and 2018, Mr. Moscoso and Ms. Hernandez filed false income tax returns, failing to report $1,427.874. If correct, the couple has more than $140,000 in personal tax liability.
Beyond the high number of tax crimes, the ongoing efforts of Ms. Hernandez and Mr. Moscoso to subvert regulations and tax regulations professionally and personally did not go unnoticed. The two were hit with the special allegation of aggravated white-collar crime with a loss over $100,000. The crime can be alleged when a fraud involves a “pattern of related felony conduct” resulting in a loss of more than $100,000.
By mid-October of this year, Ms. Hernandez remained in jail, ineligible for bail, according to Reuters.
The broken trail taken by the couple did not result in high-flying wealth for any period of time. Furtive thousands may have contributed to greater ease, but at the price of constant worry and eventually—arrest, loss of career and employment, and long-term financial insecurity. It is not improbable that incarceration is on the horizon for one or both parties.
Was it worth it? Is that kind of crime ever worth it? If you are in a position to ask yourself these questions, speak with a good criminal defense tax attorney right away.
Experienced tax lawyers in Cleveland help you with IRS audits or tax litigation
If you receive correspondence from the IRS, or are engaged in a tax controversy, the legal group at Robert J. Fedor, Esq., LLC can help. Serving clients domestically and abroad, our firm offers strategic solutions to complex tax problems for businesses and individual clients. Contact us or call 800-579-0997.
