SANTA ANA, California
A federal jury convicted an Orange County real estate investor, who successfully flipped foreclosed homes, guilty of three federal criminal tax charges, officials announced Thursday.
John W. Rampello, 71, of Santa Ana, was found guilty on Wednesday of two counts of subscribing to a false individual income tax return. He was also guilty of one count of aiding and assisting in the preparation of a false individual income tax return.
U.S.District Judge David O. Carter has scheduled sentencing for a June 27 hearing. Rampello faces up to nine years in federal prison.
According to evidence presented at his seven-day trial, Rampello, along with his business partners, was an established and successful property flipper of foreclosed homes in Orange County since the mid-1990s.
During the tax years 2014 through 2016, Rampello and his partners flipped approximately 170 homes and the defendant’s portion of the profits was approximately $2.1 million.
Rampello and his business partners kept detailed records of their property flip activities, including the profits Rampello made on each property.
But Rampello concealed this information from his income tax return preparers. He didn’t tell them that he was involved in the property flipping business.
As a result of the omission of his property flipping income from his 2014, 2015, and 2016 individual income tax returns, Rampello underreported his federal income.