Former Colma casino owner sentenced for tax evasion
Wire Report
October 31, 2008
SAN FRANCISCO — The former owner of a Colma casino was sentenced in federal court in San Francisco Thursday to one year and three months in prison for evading taxes by claiming $1.1 million in fictitious business expenses.
Rene Medina, 63, of Atherton, owned the Lucky Chances Casino from 1998 to 2007.
He pleaded guilty before U.S. District Judge Jeffrey White last year to three counts of tax evasion in 1999, 2000 and 2001.
The sentence, imposed by White Thursday has been agreed to by the prosecution and defense in the plea agreement.
White also ordered Medina to pay $973,841 in back taxes. U.S. Attorney Joseph Russoniello said Medina has already paid the amount.
The fictitious business expenses acknowledged by Medina in the guilty plea included $245,161 in furniture and redecorating costs that Medina ascribed to the casino but were actually for his Atherton home as well as another $887,740 in falsely claimed business expenses.
The taxes lost to the government as a result of the $1.1 million in false expenses amounted to $382,758.
In addition to that amount, Medina agreed to pay the government $591,083 more in back taxes for other expenses that he was originally accused of falsely claiming, but to which he did not plead guilty.
In two separate cases, two former Colma city councilmen pleaded guilty last year to failing to report gifts of free airline tickets to the
Philippines from Medina.
Former mayor and council member Phillip Lum was sentenced to one year and six months in prison and former council member Ronald Maldonado was sentenced to six months in home detention.
Bay City News Service
