Newport Tax Preparers Indicted by Grand Jury

Three former managers of a tax preparation company with offices in Newport Beach and Costa Mesa have been charged with conspiracy and tax evasion, officials reported today.

David Kalai, Nadav Kalai and David Almog were charged with conspiracy in an indictment filed Thursday by a federal grand jury in Los Angeles, the Department of Justice announced.

According to the indictment, David Kalai and son Nadav Kalai were principals of United Revenue Service Inc., a tax preparation business with 12 offices located throughout the United States. Both worked at URS's former headquarters in Newport Beach and at the Costa Mesa branch, while Almog was a regional manager in New York.

DOJ prosecutors contend that the men established undeclared bank accounts for clients at branches of two Israeli banks in Luxembourg and Switzerland.

The indictment alleges that the defendants submitted bogus income tax returns which did not reveal clients' foreign financial accounts nor report income derived from those accounts.

In order to conceal clients' income from the Internal Revenue Service, the three men incorporated offshore companies in Belize, prosecutors allege.

If convicted, the Kalais and Almog each face up to five years in prison and fines of $250,000 per person, the DOJ said.

-City News Service