A Santa Clara County brother and sister were sentenced on three
counts of state income tax fraud, according to the Franchise Tax
Board (FTB).
A Santa Clara County brother and sister were sentenced on three counts of state income tax fraud, according to the Franchise Tax Board (FTB).
Michael Scott Stenshoel, 49, and Rozann Stenshoel, 43, failed to file individual state income tax returns from 1994-1996.
Michael Stenshoel was sentenced to six months in county jail, and ordered to pay restitution of more than $142,000 in delinquent tax, penalties, interest and the cost of the investigation.
Rozann Stenshoel was sentenced to 90 days in county jail, and ordered to pay restitution of nearly $140,000 in delinquent tax, penalties, interest, and cost of the investigation. Each was given five years probation.
The Stenshoels failed to report income from the family owned and operated business, the Cade Company, which sells waterproofing materials used in the construction industry. The Stenshoels formed a trust to operate the business.
Both defendants and their parents, Larry Stenshoel, 71, and Patricia Stenshoel, 68, formed other trusts to handle their personal finances. After establishing the trusts, none of the family business income was reported on any California income tax return. The trusts were established for the sole purpose of evading income tax, FTB claimed.
The parents were also named in the arrest warrant and were arrested in Texas earlier this year. They are free on bail and are currently appealing their extradition order.
The case was heard by Santa Clara County Superior Count Judge Charles Hayden and prosecuted by Deputy District Attorney John Chase.
