A Hollister couple arrested for defrauding the state and Uncle
Sam of more than $100,000 pleaded guilty to charges that will send
them to jail for several months and require them to pay more than
double the amount of money they owed, according to tax
officials.
Hollister – A Hollister couple arrested for defrauding the state and Uncle Sam of more than $100,000 pleaded guilty to charges that will send them to jail for several months and require them to pay more than double the amount of money they owed, according to tax officials.
Corrina Lona, who was arrested a year ago on three felony counts of state income tax fraud, pleaded guilty to one felony count of filing a false income tax return and a felony white collar crime enhancement this week as part of a plea bargain, said John Barrett, spokesman for the Franchise Tax Board. Her husband, Jonas, was also arrested with three felony counts of tax fraud but pled to one misdemeanor count of filing a false income tax return, he said.
Corrina will be sentenced on Feb. 23 and will spend between 120 to 180 days in the county jail, Barrett said. Jonas will call the county jail home for between 60 to 120 days after he is sentenced on the same day as his wife, Barrett said.
Corrina defrauded the government of approximately $110,000 over a three-year period after failing to report money she earned selling pre-paid phone cards, Barrett said. But because of penalties, interest and investigation costs, the amount of restitution the couple must pay back to the state more than doubled.
If they fail to pay $260,000 within 120 days of sentencing their jail time will increase substantially, said Special Deputy District Attorney John Picone, who prosecuted the case. Corrina could spend the next three to five years in state prison and Jonas could be a guest of the county jail for up to a year, Picone said.
While the couple’s original felony charges held a maximum of nine years in state prison each, Barrett wasn’t disappointed with the reduced charges, he said.
“The important thing is tax crimes are not victimless crimes. The victims are you and me and the residents of California,” he said. “We will get restitution from these people and they’ll see jail time. This is a good sentence.”
Corrina, who failed to file taxes between 1999 and 2001, earned approximately $1.29 million selling phone cards, Barrett said. She would hawk the cards to businesses in Hollister and surrounding areas such as 7-11, and was paid in cash, which made it easy to pocket the money without the government catching on, Barrett said.
While Jonas filed returns from his employment as a maintenance mechanic at a Watsonville-area produce company, he failed to declare his wife’s income, which is illegal, Barrett said.
When agents at the Franchise Tax Board realized what the couple was doing, they were arrested with three felony counts of tax fraud and a white collar crime enhancement each.
With Corrina’s unclaimed cash, the couple purchased a $1.1 million home on the outskirts of Hollister, a Jaguar, BMW, GMC Sierra and Porsche Carrera, along with two pieces of rental property in the city, Barrett said. The couple received notices from the state asking them to pay the back taxes since 1999 but disregarded them, he said. Their procrastination finally caught up with them and they were arrested almost exactly a year ago.
After their arrest, the couple filed for bankruptcy and Picone said their bankruptcy trustee will most likely pay their restitution to the government by selling their home, cars and other toys.
“I think this was a just and equitable result,” Picone said. “But I’ll be more satisfied when the full restitution is made.”
Erin Musgrave covers public safety for the Free Lance. Reach her at 637-5566, ext. 336 or
em*******@fr***********.com
