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Criminal Corner

Diamond Springs Couple Sentenced on State Income Tax Evasion

Dora Lee Velasquez was sentenced on one felony count of state income tax evasion and given 90 days suspended jail time, ordered to complete 300 hours of community service, and placed on 5 years formal probation. Also, she was ordered to file the 2005 through 2009 state income tax returns.

In addition, Velasquez was ordered to pay restitution of $28,578 to us representing the investigation cost. The unpaid tax, penalties, and interest restitution will be determined at a later date.

Emilio Rubalcaba, Jr. was sentenced on one misdemeanor count of state income tax evasion and given 60 days suspended jail time, three years court probation, and also ordered to file the 2005 through 2009 state income tax returns.

According to court documents, Velasquez and Rubalcaba failed to file their 2001 – 2004 state income tax returns and failed to report more than $547,000 in taxable income they earned from two painting companies the couple owned. Velasquez was sole owner of Eagle Painting Company, which she closed in 2003. Rubalcaba then opened his painting business, American Eagle Painting.

We discovered the case through our internal collections process.

El Dorado County Superior Court Judge Douglas C. Phimister handed down the sentence in Department 7 of the El Dorado County Superior Court. Deputy District Attorney Vicki Ashworth of the El Dorado County District Attorney’s Office prosecuted the case.

Back to November 2010 Tax News