Couple indicted on tax fraud, evasion

Mathis Winkler

A federal Grand Jury in San Diego indicted two Newport Coast residents

Tuesday, charging them with conspiracy to defraud the government on their

income taxes as well as tax evasion.

Michael R. Molus and Carol A. Molus, the owners and operators of a

Santa Ana-based company that manufactures aircraft fuselage insulation

blankets, allegedly evaded taxes by bloating their expense statements by

$1,878,000 from 1991-95.

The couple allegedly used a portion of the money for personal

expenses, including the purchase of a luxury vacation home in Boca

Grande, Fla. They are also accused of using the money to decorate the

home and to pay Neiman Marcus bills.

Some of the defrauded tax money was also allegedly given to the

couple’s sons, Mark S. Molus of San Clemente, Matthew K. Molus of Mission

Viejo, and Michael Richard Molus III of San Juan Capistrano. All three

were charged with tax fraud as well.

Michael R. Molus’ nephews, Jason C. McCann of Temecula and Dwayne L.

Ellison of Laguna Niguel, were also charged with tax fraud.

None of the defendants or their lawyers could be reached for comment

Tuesday.

The Criminal Investigation Division of the Internal Revenue Service

investigated the case.

Danny N. Roetzel, a senior trial attorney with the U.S. Department of

Justice, will prosecute the case. Roetzel said Tuesday that he was trying

to reach the defendants to set an initial appearance before a U.S.

magistrate judge in San Diego.

The conspiracy to defraud taxes and tax evasion charges carry a

maximum penalty of five years and a fine of $250,000. Filing false tax

returns carries a maximum penalty of three years and a fine of $250,000.