California Resident Sentenced

On January 23, 2012, in Los Angeles, California, Joseph Proctor was sentenced to 60 months in prison for failing to report almost $1 million as income that he raised from investors in a company.  According to court documents, in 2002 and 2003, Proctor raised funds from investors for Powerhouse Studios, Inc. and Powerhouse Technologies Group, Inc.  Investors in Powerhouse were directed to send their investment funds to a bank account held in the name of  Brickhouse Venture Capital Limited.  Although Brickhouse was a company opened in the name of  his brother, Proctor directed how the investor funds would be spent.  In 2002, Proctor had $240,500 wire transferred in the name of his wife from the Brickhouse bank account to a joint bank account that he held with his wife.  In that same year, Proctor had an additional $100,000 wire transferred in the name of his wife to a bank account held in her name.  In 2003, Proctor wire transferred $610,000 in the name of his wife from the Brickhouse bank account to the same account held in his wife’s name.  The funds were spent to fund the lifestyles of the defendant, his wife and their daughter.  Proctor failed to report $950,500 in income on his federal income tax returns.  In 2002, Proctor reported having only $5,500 in income and paid no income tax.  In 2003, Proctor reported having only $7,450 in income and paid no income tax.

Source: IRS.gov