TAX NEWS - June 2010

California Tax Evasion: New charges in real estate scam

A couple originally prosecuted for selling an Upvalley property that didn't belong to them is now accused of tax evasion for not reporting their income from the illegal sale.

Charges were filed this spring by the Napa County district attorney's office against John and Anita Greerty.

Anita Greerty, 70, pleaded not guilty to tax evasion at a hearing last week.

Her husband, John Greerty, 71, has not been arraigned. He is serving a nine-year sentence for the real estate scam in which he bilked two victims out of more than $775,000.

In 2007, John Greerty found a vineyard property in Yountville. He changed his name to match the property owner's and acquired a driver's license under the new name, Deputy District Attorney Jose Rossi said.

He put the 11 acres up for sale for $500,000. Three prospective buyers contacted him. He told them he was dying of cancer and wanted to sell the property for cash, Rossi said.

One of the buyers started the process and backed out. Two brothers from the Bay Area and a couple from China agreed to purchase it. Both paid Greerty by transferring money into his bank accounts.

The second buyers grew suspicious. The husband looked into the records and Googled the property owner's name. He called him in San Francisco and asked him if he was selling the property.

The real property owner said the land wasn't for sale, so the buyer contacted the Napa County Sheriff's Office.

In 2008, John Greerty pleaded no contest to grand theft of personal property, identity theft and a special allegation of taking more than $500,000.

Anita Greerty was also charged with receiving stolen property in the case, and was sentenced to five years probation.

Amanda Bevins, Anita Greerty's Danville-based defense attorney, said her client should have never been charged with tax evasion.

"It was two years ago that she pleaded to the possession of stolen property, and this offense, if it even could have been charged against her, could have been charged at least a year and a half ago," she said.

She declined to comment further.

Tax evasion is a different crime that the original crime and occurs at a different time, Rossi said.

"Tax evasion doesn't occur right when the person gets the money," he said.

Rossi declined to comment on the timing of the charge.