Date: January 14, 2021 Contact: firstname.lastname@example.org Los Angeles — An Orange County house flipper who admitted to misappropriating investor funds pleaded guilty today to two federal tax charges for concealing his income. Scott Weidenhammer of Laguna Hills, pleaded guilty to two counts of subscribing to a false income tax return. According to his plea agreement, between 2010 and 2015, Weidenhammer conducted a "house-flipping" operation by which he would buy, renovate, and sell high-end homes. Weidenhammer solicited money from investors, promising to use the funds as working capital for his house-flipping operation. Instead, he diverted funds back into his bank account for personal use. During the 2013 and 2014 tax years, Weidenhammer omitted gross receipts from his individual federal income tax return causing a combined tax loss to the United States government of at least $100,000. Weidenhammer admitted that he failed to report income from the commissions he earned flipping homes along with the diverted investor funds used for personal expenditures. Weidenhammer then signed and mailed the income tax returns knowing of the omissions, completing the tax fraud scheme. United States District Judge Dale S. Fischer has scheduled a May 10, 2021 sentencing hearing, at which time Weidenhammer will face a statutory maximum sentence of six years in federal prison. "Scott Weidenhammer defrauded investors, using the money they invested in his house-flipping business as his own personal piggy bank. Weidenhammer misappropriated investor funds to fuel his lavish lifestyle of luxury cars and multi-million dollar home(s)," said IRS-Criminal Investigation Los Angeles Field Office Special Agent in Charge Ryan Korner. "This case exemplifies our excellent partnerships with HSI and the U.S. Attorney's Office, and highlights IRS-CI's ongoing commitment to working tirelessly with our law enforcement partners to investigate fraud and bring to justice those who conceal income and fail to pay their fair share." This case is the result of a joint investigation by IRS Criminal Investigation and Homeland Security Investigations. This matter is being prosecuted by Assistant United States Attorney Mark R. Aveis of the Major Frauds Section of the United States Attorney's Office for the Central District of California.