Attorney Who Won $3.8 Million Award for Rodney King Pleads Guilty to Tax Evasion
Background
William Grimes, a renowned Los Angeles attorney, has pleaded guilty to failure to pay over $2.4 million in taxes. This comes as a surprise, given his success in securing a $3.8 million civil claim on behalf of police brutality victim Rodney King in 1994.
Tax Evasion Charges
Grimes entered a plea to one federal count of tax evasion, resolving allegations that he failed to pay taxes for nearly a decade. The plea agreement was filed in L.A. federal court, and prosecutors will recommend a sentence of no more than one year, 10 months in prison, along with up to $9.5 million in restitution during the sentencing hearing on February 11.
The Investigation
The IRS attempted to collect the unpaid taxes from Grimes, with one of the methods being the levying of his personal bank accounts. In response, Grimes allegedly engaged in a scheme to thwart the levies by keeping his personal bank account balances low. This was done by depositing funds into his law firm’s business bank accounts, then procuring cashier’s checks and withdrawing cash from those accounts.
How the Scheme Worked
Grimes allegedly withdrew approximately $16 million in funds from the business accounts in cashier’s checks during the years 2014-2020. He also filed individual income tax returns for tax years 2018-2021, reporting that he owed approximately $700,000 in taxes. Notably, Grimes did not pay the taxes that he self-reported he owed.
The Legacy of Rodney King
Rodney King, the police brutality victim who Grimes successfully represented, died in June 2012 in an accidental drowning. His legacy continues to be remembered and celebrated, with Grimes’ guilty plea serving as a stark contrast to his earlier success.
Conclusion
William Grimes’ guilty plea to tax evasion is a shocking turn of events, particularly given his significant accomplishments in the legal field. The case serves as a reminder of the importance of personal responsibility and the consequences of financial mismanagement.
Frequently Asked Questions
Q: What did William Grimes plead guilty to?
A: Grimes pleaded guilty to one federal count of tax evasion.
Q: What was the amount of unpaid taxes owed by Grimes?
A: Grimes owed over $1.7 million in taxes for tax years 2010 and 2014.
Q: How did Grimes allegedly thwart the IRS’s attempts to collect the unpaid taxes?
A: Grimes allegedly kept his personal bank accounts low by depositing funds into his law firm’s business bank accounts, then procuring cashier’s checks and withdrawing cash from those accounts.
Q: What is the recommended sentence for Grimes?
A: Prosecutors will recommend a sentence of no more than one year, 10 months in prison, along with up to $9.5 million in restitution.
