Wednesday, February 1, 2023
Wednesday, February 1, 2023

    Long Beach Lobbyist Pleads Guilty to Federal Tax Charge and Admits Failing to Report Income Received from Illegal Marijuana Stores

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    LOS ANGELES, CA – A Long Beach-based lobbyist, whose clients included illegal marijuana stores in Long Beach, has been charged with filing a false tax return and failing to report more than three-quarters of a million dollars in income over a six-year period.

    • Carl A. Kemp, 43, of Long Beach, the owner of the public relations firm The Kemp Group, was charged with subscribing to a false tax return for the year 2012
    • In a plea agreement filed, Kemp agreed to plead guilty to the tax offense
    • As part of the plea agreement, Kemp admits receiving a total of $754,783 in income that he failed to report on his taxes for the years 2007 through 2012
    • Kemp admits that he owes the Internal Revenue Service a total of $210,661 to cover the back taxes due for those six years, as well as a civil fraud penalty

     “For years, Mr. Kemp failed to accurately report his income to the IRS, going so far as reporting zero taxable income for 2012 when his business brought in more than $200,000,” said United States Attorney Eileen M. Decker. “Everyone, no matter what business they are engaged in, has a responsibility to fully report their income on their income tax returns.”

    • The charge of subscribing to a false tax return carries a statutory maximum penalty of three years in federal prison
    • Kemp will be directed by the court to appear for an arraignment in this case, likely later this month
    • The case against Kemp was investigated by IRS Criminal Investigation and the Federal Bureau of Investigation
    • The case is being prosecuted by Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section
    • Kemp is scheduled to be sentenced on November 7, at which time he will face a statutory maximum sentence of three years in federal prison
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