Operator of Glendale tax preparation business accused of pocketing more than $1.2M in refunds

Federal investigators last week arrested the operator of a Glendale tax preparation business accused of pocketing more than $1.2 million in tax refunds that should have gone to his clients, officials said.

Michael Joseph Calalang Cabuhat, half-owner of VisionQwest Resource Group Inc., which operates VisionQwest Accountancy Group and Icon Tax Group Inc. in Glendale, was charged with one count each of wire fraud, aggravated identity theft and structuring financial transactions to evade reporting requirements, according to the U.S. Attorney’s Office.

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Federal officials said Cabuhat, who refers to himself as “celebritytaxguy,” would give his clients a copy of a tax return reflecting a much smaller refund than he filed with the IRS. He’d then reportedly tell the IRS to deposit the small amount to the taxpayer’s account, and the rest into his own account.

In other cases, Cabuhat reportedly told his clients they owed taxes, but sought refunds on behalf of them from the IRS, later pocketing money from both the client and the IRS.

From 2010 to 2015, Cabuhat allegedly bilked 144 clients out of more than $1.2 million.

Cabuhat is also accused of depositing $29,700 in three separate transactions over seven days to avoid federal bank reporting requirements, officials said. A day after completing the transactions, Cabuhat allegedly wrote a $24,500 check to purchase a Ferrari 360 Spider, which was seized last week by federal agents.

Cabuhat was released after posting $250,000 bail and is due in court next month. If convicted, he faces up to 27 years in federal prison.

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Alene Tchekmedyian, [email protected]

Twitter: @atchek