A California accountant who once held a long-standing reputation in the business world is now facing serious legal trouble.
Michael M. Gilbert, a 69-year-old certified public accountant from San Rafael, has been hit with a new round of charges after a federal grand jury in San Francisco returned a superseding indictment expanding the case against him.
Allegations of False Tax Filings and Financial Misconduct
According to the updated indictment, Gilbert is accused of filing false tax returns not just for himself, but also for two businesses under his control.
These offenses allegedly took place over a span of several years — from 2017 to 2020.
Prosecutors say he deliberately underreported the income generated by his accounting and tax firm, M.M. Gilbert & Company Inc.
Hidden Payments and a Web of Shell Entities
But that’s not all. The indictment reveals a deeper scheme involving another company Gilbert managed — White Mountain Properties Inc.
Prosecutors claim Gilbert encouraged clients to make payments to White Mountain under the guise of “donations” or for “tax strategies.”
He then allegedly failed to declare those funds as income on the company’s tax returns between 2017 and 2021.
These payments, according to the indictment, were part of a fraud scheme in which Gilbert promised tax benefits that never materialized.
Instead, investigators allege that Gilbert rerouted the money for his personal benefit.
Millions Moved and Not Reported
The government further alleges that between 2020 and 2021, Gilbert moved over $5 million from White Mountain Properties directly into his own accounts.
Despite this massive transfer, the income wasn’t reported on his personal tax returns either, officials say.
The Charges and What Gilbert Could Be Facing
If found guilty, Gilbert could be looking at some heavy prison time.
Each count of mail fraud carries up to 20 years behind bars. The money laundering charges could add another 10 years per count.
And the false tax return counts? Each could bring a maximum of three years.
Ultimately, sentencing would be left up to a federal judge, who would weigh federal sentencing guidelines and other legal factors.
Justice Department and IRS Step In
The case is being led by the Justice Department’s Tax Division, along with the U.S. Attorney’s Office for the Northern District of California.
The IRS Criminal Investigation unit is handling the investigative work, and the trial team includes attorneys Julia M. Rugg, Patrick Burns, and Assistant U.S. Attorney Sara E. Henderson.
A Reminder: Charges Are Allegations, Not Proof
It’s important to remember that at this stage, these are just allegations.
An indictment is not proof of guilt. Like anyone accused in a U.S. court, Gilbert is presumed innocent unless and until proven guilty beyond a reasonable doubt.
