UPDATE: Ex-City Council Candidate Pleads Guilty for Failing to Report Income From Illegal Marijuana Sales

 

UPDATE | Former Long Beach City Council candidate and lobbyist Carl Kemp was sentenced to one year in prison Monday, after pleading guilty to filing a false tax return and failing to report over $750,000 in income while working as a lobbyist for clients that included Long Beach-based marijuana stores.

Kemp, a former principal of the lobbying firm The Kemp Group, was sentenced by U.S. District Judge Philip S. Gutierrez, who also ordered the defendant to pay $210,661 in restitution to the Internal Revenue Service (IRS) to cover his back taxes.

Kemp pleaded guilty in July to filing a false tax return for the year 2012. On his return, Kemp reported that he had no taxable income, when his business took in about $180,000.

City News Service contributed to this report.

PREVIOUSLY: Ex-City Council Candidate Pleads Guilty for Failing to Report Income From Illegal Marijuana Sales

On 07/25/2016 | A local lobbyist and former Long Beach City Council candidate pleaded guilty Monday to filing a false tax return and failing to report hundreds of thousands of dollars in income while working as a lobbyist for a variety of clients, including illegal Long Beach-based marijuana stores.

Story continued below.
S P O N S O R

Carl Kemp, 43, entered his guilty plea before U.S. District Judge Philip S. Gutierrez, admitting his failure to report $754,783 in income from 2007 to 2012, according to a release from the U.S. Attorney’s Office.

Kemp is scheduled to be sentenced Nov. 7. He faces a maximum sentence of up to three years in federal prison.

UPDATE | A local lobbyist and former Long Beach City Council candidate pleaded guilty Monday to filing a false tax return and failing to report hundreds of thousands of dollars in income while working as a lobbyist for a variety of clients, including illegal Long Beach-based marijuana stores.

Story continued below.
S P O N S O R

Carl Kemp, 43, entered his guilty plea before U.S. District Judge Philip S. Gutierrez, admitting his failure to report $754,783 in income from 2007 to 2012, according to a release from the U.S. Attorney’s Office.

Kemp is scheduled to be sentenced Nov. 7. He faces a maximum sentence of up to three years in federal prison.

PREVIOUSLY: Former Lobbyist and City Council Candidate Carl Kemp Speaks out on Tax Return Charges

6/9/16 at 5:47PM | Carl Kemp, former city council candidate and Long Beach-based lobbyist issued a statement regarding his agreement to plead guilty to filing a false tax return and failing to report more than three-quarters of a million dollars in income over a six-year period while working as a lobbyist for a variety of clients.

Kemp’s clients included illegal Long Beach-based marijuana dispensaries, from which he earned $754,783 in income that he failed to report on his taxes for 2007 through 2012. He acknowledged owing the Internal Revenue Service $210,661 to cover the back taxes due for those six years and civil fraud penalty.

“I made some irresponsible mistakes and I am prepared to deal with the consequences,” wrote Kemp in a Facebook statement. “I regret the impact that those mistakes are having on my family, however, I never misrepresented anyone that trusted me enough to advocate for their issues. My love and devotion for my family, friends and city has not, and will never change.”

Kemp ran for the Fifth District city council seat in 2014 and ran The Kemp Group for a number of years.

Above, left: Photo courtesy of the Team Kemp LBC Facebook page

PREVIOUSLY: Long Beach Lobbyist Pleads Guilty for Failing to Report Income Received from Illegal Marijuana Sales

On 06/08/16 at 3:27PM | Carl A. Kemp, 43, of Long Beach has agreed to plead guilty to filing a false tax return and failing to report more than three-quarters of a million dollars in income over a six-year period while working as a lobbyist for a variety of clients, including illegal Long Beach-based marijuana stores.

Kemp, the owner of lobbying firm The Kemp Group, was charged yesterday with subscribing to a false tax return for the year 2012, according to the Department of Justice (DOJ).

“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 in a statement. “Everyone, no matter what business they are engaged in, has a responsibility to fully report their income on their income tax returns.”

As part of the plea agreement also filed yesterday, Kemp agreed to plead guilty to the tax offense, admitting to receiving a total of $754,783 in income that he failed to report on his taxes for 2007 through 2012. He acknowledged owing the Internal Revenue Service $210,661 to cover the back taxes due for those six years and civil fraud penalty.

“As admitted by Kemp in documents filed with the court today, all forms of income are taxable, including cash payments received from illegal marijuana dispensaries and fees paid for lobbying services,” said IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando in a statement. “Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t.”

Based upon the charges, Kemp faces a statutory maximum penalty of three years in federal prison. He will be directed to appear for an arraignment in the case most likely this month, according to the DOJ.
The case against Kemp was investigated by IRS Criminal Investigation and the Federal Bureau of Investigation.



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