Local Businessman Charged With Federal Tax Fraud

By Lookout Staff

June 22, 2011 – Santa Monica businessman Howard Hal Berger was indicted for federal tax fraud in United States District Court Monday.

Berger was accused of falsely reporting a $1 million contribution on a partnership income tax return for Lab Holdings LLC for tax year 2006, substantially reducing his tax liability, according to officials at the Internal Revenue Service (IRS) Criminal Investigations Office.

In addition, Berger was charged with having claimed $991,700 in charitable contributions on his individual 2006 tax return, IRS officials said.

They claimed that while he was being audited, Berger provided a false charitable donation letter in an effort to substantiate the donations on his individual tax return.

Berger pled not guilty before Judge John F. Walter. He had already pled not guilty to the charges in an indictment returned by a federal grand jury last week.

IRS officials emphasized that the charges are allegations, and that “every defendant is presumed to be innocent until proven guilty in court.”

If Berger is convicted, he can face up to 9 years in federal prison and $750,000 in fines.

His trial is scheduled for August 9, 2011 before Judge Walter.

The investigation of Berger was conducted by IRS-Criminal Investigation in conjunction with the United States Attorney’s Office in Los Angeles.