LOS ANGELES – Agoura Hills-based real estate magnate Mark Handel has copped to federal charges of bankruptcy fraud and tax evasion, according to the Justice Department. The 68-year-old developer is accused of lying on a bankruptcy petition, failing to disclose nearly $2.3 million in income, and for not reporting almost $6.9 million in earnings on his tax returns.
Handel has agreed to enter a guilty plea on two counts charging him with making a false statement in bankruptcy and subscribing to a false tax return. He is set to forfeit approximately $3.5 million from the sale of real estate in Alameda County, along with paying over $1.45 million in tax liabilities to the IRS.
The court documents reveal that in April 2015, Handel filed for bankruptcy, falsely stating he had no income since 2013. In reality, he earned nearly $2.3 million from his real estate development company, DTMM Construction Inc. He used a shell company registered under his wife’s name to hide profits and expenses.
In October 2016, Handel filed a fraudulent federal income tax return, omitting about $1.1 million in income for the 2015 tax year. Over a seven-year period ending in 2017, he failed to report nearly $6.9 million on his returns. He also admitted to falsely reporting a net operating loss of over $7.2 million and understating income by $1.4 million on his 2018 return, while owing an additional $460,000 in taxes.
Upon pleading guilty, Handel could face up to eight years in federal prison. The investigation was conducted by IRS Criminal Investigation and the FBI, with assistance from the Office of the United States Trustee. Assistant U.S. Attorney Thomas F. Rybarczyk is handling the prosecution.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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