LOS ANGELES
Officials stated that Milton C. Grimes, a Los Angeles lawyer, pleaded guilty Tuesday to evading more than $4 million in federal taxes over 21 years.
Grimes admitted to one count of tax evasion in 2014, for which he owed the IRS $1.6 million. His plea reveals that he avoided federal income taxes from 2002 through 2023 (except certain years), with a total of $4,071,215 unpaid.
Grimes also failed to file a 2013 tax return.
The IRS attempted to collect Grimes’ taxes by issuing over 30 levies on his bank accounts since September 2011.
However, from 2014 to 2020, Grimes evaded these levies by not depositing his income into personal accounts.
Instead, he used approximately 238 cashier’s checks worth $16 million to keep his funds beyond the IRS’s reach. He frequently withdrew cash and bought cashier’s checks from client trust accounts rather than paying taxes.
For example, on December 5, 2018, he deposited about $1 million into his trust account and immediately purchased nine cashier’s checks totaling the same amount.
Judge Stanley Blumenfeld Jr. scheduled sentencing for February 11, 2025, where Grimes faces a maximum of five years in prison, though prosecutors are recommending a sentence of up to 22 months.
IRS Criminal Investigation looked into the case.
Assistant U.S. Attorneys Valerie L. Makarewicz, Sarah S. Lee, and Justice Department Trial Attorney Sara A. Henderson are prosecuting the case.