Prosecutors Say Orange County Businessman Cheated IRS Taxes on $2.4 Million

Orange County’s Ronald Reagan Federal Courthouse (Photo by R. Scott Moxley)

Prosecutors in the U.S. Attorney’s office this week filed charges against a Southern California business executive who allegedly failed to file income tax forms on nearly $2.4 million in revenue.

Jon David Heindel, who worked as chief information officer at Billabong Americas, directed at least 33 vendor payments to businesses controlled by a friend—the owner of Side Studies and B-Side Ventures, according a filing by Brett A. Sagel, an Orange County-based federal prosecutor.

Law enforcement agents believe the payments eventually landed in a bank account for Heindel’s NetworkLounge.Com.

Filings inside the Ronald Reagan Federal Courthouse in Santa Ana show he failed to disclose related income to the Internal Revenue Service (IRS) from 2011 to 2014 in respective amounts of $294,792, $788,490, $998,020 and $305,430.

It’s unclear how much the defendant, who was born in 1971, cheated the government in taxes, but Sagel is requiring him to file accurate income tax disclosures to the IRS during the pendency of the case.

Heindel—a Mission Viejo resident who quickly pleaded guilty—faces a maximum prison term of five years and a $100,000 fine in addition to paying all due back taxes.

U.S. District Court Judge James V. Selna will preside over the case.

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