Ex-Newport man, 80, facing prison after tax return reported he made $28 instead of $350,000

A former Newport Beach resident faces up to three years in federal prison for filing a false tax return that claimed he made only $28 in 2008 when he actually made more than $350,000, according to the Internal Revenue Service.

David J. Thomas, 80, pleaded guilty Monday before U.S. District Judge David O. Carter, according to a plea agreement obtained by the Daily Pilot.

Thomas, also known as Philip Lee David Jack Thomas, didn’t file his 2008 return until 2010, said Linda Lowery, a spokeswoman for IRS Criminal Investigation. The IRS estimates the tax loss at $99,000.

“Honest taxpayers should be reassured that everyone pays their fair share,” Lowery said.

In addition to a maximum three-year prison sentence, Thomas, who now lives in Washington state, also could face a $250,000 fine. He is expected to be sentenced Aug. 8.

Thomas is the former owner and president of two Orange County businesses, All-American Capital Inc. and United American Ventures. In 2010, the U.S. Securities and Exchange Commission sued Thomas and business partner Eric J. Hollowell over their part in a bond scam. The two were fined $10.5 million.