Walter Daniel Prezioso, False Tax Return Filing, California 2024

LOS ANGELES – In a move that will likely make taxpayers shudder, a Valencia man was sentenced to 24 months in federal prison for filing a false tax return that failed to report hundreds of thousands of dollars in personal expenses paid for by his company.

Walter Daniel Prezioso, 47, the former vice president and manager of the now-defunct GSP Precision, Inc., was sentenced today by United States District Judge John F. Walter.

A federal jury in November convicted Prezioso of one count of willfully subscribing to a false 2013 federal income tax return. Prezioso used his control over GSP’s checking account and corporate lines of credit to make payments for many of his personal expenses, including luxury automobile leases and the construction of a tennis court and swimming pool at his residence.

Between 2007 and 2013, according to court documents, Prezioso used GSP funds to pay for hundreds of thousands of dollars in personal expenses. He concealed the expenditures as legitimate business expenses on GSP’s books and records, thereby ensuring that his true income from GSP would not be reported on his Forms W-2 or as officer compensation on GSP’s corporate tax returns.

According to the government’s evidence, Prezioso failed to report any of the additional compensation on his individual income tax returns, resulting in a tax loss of more than $751,000.

The jury that convicted Prezioso of subscribing to a false 2013 individual income tax return acquitted the defendant of seven additional counts. The investigation into Prezioso was conducted by IRS Criminal Investigation.

The case was prosecuted by Assistant United States Attorneys Paul H. Rochmes, Valerie L. Makarewicz and James C. Hughes of the Tax Division. This case highlights the importance of tax honesty and the consequences of failing to report income on tax returns.

Prezioso’s sentence is a reminder that tax crimes will not be taken lightly by law enforcement and the courts. Taxpayers are urged to report all income and claim only legitimate deductions to avoid similar consequences.

Prezioso is expected to begin serving his sentence in the coming weeks. His attorney has not commented on the sentence or the case, citing ongoing appeals.

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