A prominent Los Angeles lawyer is now facing federal charges for tax evasion and failing to pay over $1.7 million in taxes, according to an indictment unsealed yesterday. Milton C. Grimes, whose client list includes a range of high-profile figures in the entertainment and legal fields, stands accused of scheming to outmaneuver the Internal Revenue Service's attempts to collect owed taxes over 10 years.
The indictment, as reported by the Department of Justice, contends that Grimes orchestrated a complex scheme to bypass IRS levies by transferring funds out of his business accounts, often immediately after deposits were made, into cashier's checks and cash withdrawals. This strategy effectively kept his personal bank account balances low, allowing him to evade the IRS's collection efforts. His antics allegedly involved the withdrawal of some $16 million in the form of cashier's checks, between the years of 2014 and 2020.
Moreover, the evasion didn’t stop there; Grimes filed tax returns for the years 2018 through 2021 showing a tax debt of about $700,000, which the DOJ states he has yet to pay. The cumulative actions by Grimes are said to have caused a tax loss to the IRS that nears a staggering $2.4 million.
Should Grimes be found guilty of the charges set forth, the penalties could be severe. The tax evasion count alone could land him in prison for up to five years, with an additional potential year for each count of willful failure to pay taxes. In keeping with judicial practice, "A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors," the Justice Department announced.
This case is currently being investigated by IRS Criminal Investigation and prosecuted by Trial Attorney Sara Henderson of the Justice Department’s Tax Division along with Assistant U.S. Attorney Valerie Makarewicz for the Central District of California. It is critical to note that an indictment is simply an allegation, and Grimes, like any defendant, is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
