Date: August 25, 2023 Contact: newsroom@ci.irs.gov A local physician pleaded guilty to filing false tax returns with the Internal Revenue Service, under-reporting his income by more than half a million dollars over a five-year period. On Aug. 24, Fares J. Rabadi of Los Angeles, pleaded guilty to four counts of subscribing to a false tax return, in violation of 26 U.S.C. § 7206(1). Rabadi hid income from his accountant by depositing checks issued by health insurance companies for medical services rendered into his personal bank accounts, resulting in substantial undisclosed personal income as follows: $78,537.19 for tax year 2014; $131,842.35 for tax year 2015; $132,500.78 for tax year 2016; and $128,207.70 for tax year 2017. After Rabadi's accountant grew suspicious and terminated him as a client, Rabadi turned to a new accountant but continued to deposit checks issued by health insurance companies for medical services rendered into his personal bank accounts. This resulted in undisclosed income of $102,692.43 for tax year 2018. "Tax crimes harm everyone. These crimes result in less funding available for vital government programs such as health care, as well as defense programs and our military," said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation (CI) Los Angeles Field Office. "Dr. Rabadi intentionally attempted to conceal his true income from his accountants and the IRS. CI special agents will always hold tax cheats accountable." IRS Criminal Investigation investigated this matter. Assistant United States Attorneys Kyle Kahan, Sarah Spielberger and Kevin Fu of the United States Attorney's Office for the Central District of California prosecuted this case.
