Santa Rosa Man Gets Prison For Underreporting Pot Business Income
SANTA ROSA (CBS SF) – A Santa Rosa man has been sentenced to 24 months in prison for tax fraud, United States Attorney Alex G. Tse announced Thursday.
Charles Woods, 44, was also ordered to pay a fine of $10,000 and restitution of $466,707 for willfully filing a false individual tax return with the Internal Revenue Service.
Woods pleaded guilty to tax fraud on May 25.
Prosecutors said Woods admitted to engaging in marijuana distribution in 2012, 2013 and 2014 and knowingly filed tax returns for those years that underreported income from his marijuana distribution.
To conceal his income and evade currency transaction reporting requirements, Woods deposited more than $1 million into numerous bank accounts under his control in amounts less than $10,000, prosecutors said.
In total, Woods failed to report more than $1.1 million in gross receipts from his marijuana distribution business, resulting in a tax loss of $466,707 to the United States.
Following his release from prison, Woods will also serve a year of supervised release, prosecutors said.
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