San Rafael CPA Accused of $5M Tax & Mail Fraud

SAN FRANCISCO – Michael M. Gilbert, a San Rafael Certified Public Accountant, is facing serious federal charges after a grand jury returned a superseding indictment alleging a years-long scheme of tax evasion, mail fraud, and money laundering. The feds say Gilbert, 68, systematically underreported income from his accounting firm, M.M. Gilbert & Company Inc., and siphoned client money under the guise of “tax strategies” and “donations.”

According to the indictment, Gilbert, licensed as a CPA since 1985, allegedly falsified tax returns for himself and his businesses from 2017 through 2020. But the alleged fraud went deeper. The government claims Gilbert solicited payments from clients, directing funds to a second entity he controlled, White Mountain Properties Inc. These payments, pitched as legitimate tax benefits, were never delivered, prosecutors say. Instead, Gilbert allegedly pocketed the cash.

The scale of the alleged scheme is staggering. Between 2020 and 2021 alone, the indictment details transfers of more than $5 million from White Mountain Properties Inc. directly to Gilbert, which he then failed to report on his own individual tax returns. This isn’t just sloppy accounting; it’s a brazen attempt to evade taxes and enrich himself at the expense of his clients, according to the Department of Justice.

The indictment lays out a clear pattern: clients paid for services, the money flowed through White Mountain, and Gilbert allegedly used it for personal expenses. The “tax strategies” and “donations” were, in reality, a fraudulent lure, designed to separate victims from their money. IRS Criminal Investigation (IRS-CI) spearheaded the investigation, uncovering what they believe is a deliberate and calculated scheme to defraud.

“An indictment merely alleges that crimes have been committed,” stressed U.S. Attorney Craig H. Missakian in a press release. Gilbert is presumed innocent until proven guilty. However, if convicted on all counts, he’s looking at a potentially lengthy prison sentence: up to 20 years for each count of mail fraud, 10 years for each count of money laundering, and three years for each false tax return filed. Sentencing will be determined by the court, guided by federal guidelines.

The case is being prosecuted by Assistant United States Attorney Sara E. Henderson, with support from Marina Ponomarchuk, and Trial Attorneys Julia M. Rugg and Patrick Burns of the Tax Division. The investigation, led by IRS-CI Oakland Field Office Special Agent in Charge Linda Nguyen, highlights the ongoing federal commitment to cracking down on financial crimes and holding accountable those who exploit the tax system for personal gain. This is a developing story, and Grimy Times will continue to provide updates as the case progresses.