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Shocking $17M Fraud Case: MLB Star’s Interpreter Sentenced
Oh boy, this one is a doozy. I’m still amazed after all the stories I’ve written about crazy tax cheats, that I could still find a story that shocks me as much as this one did.
I sure hope the victim can collect the amount that was ordered returned to him.
Here we go:
A former Japanese-language interpreter was sentenced to 57 months in federal prison for illegally transferring nearly $17 million from the bank account of MLB star Shohei Ohtani. This transfer was done without authorization to pay off substantial gambling debts incurred with an illegal bookmaking operation and for signing a false tax return.
Ippei Mizuhara of Newport Beach was ordered to pay $16,975,010 in restitution to Ohtani and $1,149,400 in restitution to the IRS. He pleaded guilty in June 2024 to one count of bank fraud and one count of filing a false tax return. He is free on $25,000 bond and was ordered to surrender to federal authorities by March 24.
Sadly, he exploited his unique position of trust as an advisor and friend, stealing millions of dollars from Ohtani to cover debts incurred through illegal gambling. Additionally, he failed to report these ill-gotten gains as taxable income. This case serves as an example of how individuals in positions of trust can defraud those they serve as well as the government.
Mizuhara’s role involved regularly interacting with Ohtani’s sports agents and financial advisors, who did not speak Japanese, on behalf of Ohtani, who did not speak English. Although Mizuhara was employed by the Los Angeles Angels MLB team and later the Los Angeles Dodgers, Ohtani paid him separately for additional duties such as driving him to meetings and interpreting for non-baseball-related activities.
In March 2018, Mizuhara accompanied Ohtani to a bank in Phoenix to help him open a bank account for his MLB salary. Mizuhara interpreted for Ohtani when the bank employee provided the login information for this account. Beginning in September 2021, Mizuhara started placing sports bets with an illegal bookmaker and quickly became indebted due to losses. He then began a scheme to deceive and cheat the bank to fraudulently obtain money from Ohtani’s account.
From November 2021 to March 2024, Mizuhara used Ohtani’s password to access the bank account and changed the account’s security protocols without Ohtani’s knowledge or permission. Specifically, he altered the registered email address and telephone number so that bank employees would contact him instead of Ohtani for transaction verifications. Mizuhara impersonated Ohtani and used his personal information to authorize wire transfers from the account, calling the bank and impersonating Ohtani approximately 24 times.
In September 2023, Mizuhara charged $60,000 worth of dental work to Ohtani’s bank account despite Ohtani agreeing to pay via check from a different account. Mizuhara then deposited this check into his personal bank account. From January 2024 to March 2024, Mizuhara purchased approximately $325,000 worth of baseball cards from online resellers with Ohtani’s funds, intending to resell them for personal gain.
When questioned by Ohtani’s sports agent and financial advisors about access to the bank account, Mizuhara falsely claimed that Ohtani wanted the account kept private to conceal his fraudulent activities. Mizuhara obtained over $16,975,010 from Ohtani through deceitful means.
In February 2024, Mizuhara filed a false individual federal income tax return for the tax year 2022, underreporting his total taxable income as $136,865, while knowingly failing to report an additional $4.1 million. Under penalty of perjury, he signed the false income tax return and owes approximately $1,149,400 in additional taxes for the tax year 2022, plus interest and penalties.
Tax Fraud Unveiled: The Case of Salvador Gonzalez and the $28 Million Scam
A Riverside County man has been sentenced to 72 months in federal prison for preparing and filing false tax returns for his clients, resulting in a tax loss to the IRS of at least $28 million, as announced by the Justice Department today. Salvador Gonzalez, residing in Corona, was sentenced on Monday by United States District Judge Jesus G. Bernal, who also mandated restitution payments totaling $403,908.
Gonzalez entered a guilty plea on June 17 to three counts of aiding and assisting in the preparation of false tax returns. Beginning in 2013, Gonzalez operated Grace’s Lighthouse Resource Center, Inc., a tax return-preparation business based in Corona. Throughout this period, Gonzalez consistently advised his clients to create fictitious corporations and to title their homes, vehicles, and other assets under the names of these corporations. He then referred these clients to an associate responsible for preparing the tax returns of these sham corporations. The associate would provide the clients with a blank spreadsheet, requesting that they input their business expenses.
Under Gonzalez’s instructions, clients included personal expenses such as mortgage payments, car payments, and utility bills in the spreadsheet provided to the associate. Consequently, the associate used this information to prepare business tax returns that inevitably displayed a loss. These fabricated losses were incorporated into the clients’ individual income tax returns, fraudulently reducing their taxable income.
Gonzalez further reduced his clients’ tax liabilities by fabricating deductions on their personal returns, including unreimbursed employee expenses, charitable contributions, and medical and dental expenses. As a result of these fraudulent practices, his clients paid less in taxes than they rightfully owed.
Before 2019, Gonzalez typically charged clients a flat fee of $500 per tax return. In 2019, he adjusted his fee structure to charge clients 1% of their gross income for his services. According to court documents, Gonzalez’s actions resulted in a tax loss to the IRS amounting to at least $28 million.
Consistent with the plea agreement, the U.S. Attorney’s Office – Tax Section filed a civil complaint in the U.S. District Court for the Central District of California against Gonzalez. The complaint seeks to permanently prohibit Gonzalez from preparing, assisting in, directing, or supervising the preparation or filing of federal tax returns, amended tax returns, or other related documents or forms for others. The civil complaint alleges that over several years, Gonzalez prepared tax returns that understated the federal income-tax liability of his customers through a scheme that harmed the United States, the IRS, his customers, and the public.
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