Fresno woman pleads guilty to tax charges; agrees to get rid of the mansion, BMW

The Robert E. Coyle Federal Courthouse in downtown Fresno. Photo file

Pilar Rose, 51, a former Fresno resident, pleaded guilty Monday to tax evasion and obstructing an IRS audit, U.S. Attorney Philip A. Talbert announced.

Rose also agreed to forfeit her share of more than $2.5 million in proceeds from the sale of her and her husband’s mansion and BMW, which authorities had previously seized.

According to court records, from 2012 to 2015, Rose prepared false financial statements for her husband’s orthodontic practice that significantly understated the practice’s profits. As a result, Rose avoided paying more than $870,000 she and her husband owed in federal taxes.

Then, in early 2016, Rose obstructed an IRS audit of her and her husband’s taxes. She altered hundreds of checks that were for the couple’s non-deductible personal expenses, such as mortgages, utilities, landscaping, pool cleaning, cars, credit cards, and children’s college tuition, to make it look like the checks were business deductions. costs. She also created false financial statements for her husband’s orthodontic practice to match the altered checks. She submitted altered checks and false financial statements to IRS auditors to try to avoid paying federal taxes that she and her husband actually owed.

In June 2015, Rose sought to refinance a $1.5 million mortgage on the couple’s Van Ness Boulevard mansion in Fresno. In order to reassure the bank of their creditworthiness and induce the bank to grant the loan, Rose provided copies of her and her husband’s federal tax returns that showed significantly more income than was reported on the actual returns they filed with the IRS. Finding inconsistencies, the bank refused to grant the loan.

Then, in July 2015, Rose applied to a second bank for a loan to refinance a $1.47 million Van Ness Boulevard mortgage. In the statement, she claimed their bank accounts had a combined balance of more than $250,000, when in fact they had less than $3,000. She also provided copies of her and her husband’s federal tax returns and an income statement that greatly exaggerated the profitability of her husband’s orthodontic practice. As a result, the second bank approved the loan, and Rose and her husband received $1.47 million to which they were not entitled. The authorities later seized the residence.

In addition, in September 2017, Rose purchased a new BMW sedan for approximately $90,000. She made a down payment of $25,000 and financed the remaining $65,000 with a loan from a third bank. In her loan application, Rose claimed to be an attorney making over $600,000 a year, when in fact she was not. She also used a Social Security number that belonged to her husband’s former dental school classmate because she knew that using her real Social Security number would result in her having a poor credit score, which could disqualify her for a loan. As a result, the loan was approved, and Rose received more than $65,000 to which she was not entitled. Authorities later seized the BMW.

This case is the result of an IRS criminal investigation. The case is being prosecuted by Assistant US Attorneys Joseph Barton, Michael Tierney, Alison Berg and Kevin Hasigian.

Rose is scheduled to be sentenced on March 17, 2025. She faces a maximum sentence of five years in prison and a $100,000 fine on the tax evasion charge and an additional three years in prison and a $5,000 fine on the obstruction charge.