SANTA ANA (CNS) - The owner of a Newport Beach-based artificial turf company was sentenced Friday to 15 months behind bars for a tax evasion scheme.
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Craig Steven Voyton, 56, of San Pedro, pleaded guilty in July to one count of tax evasion. The owner of Smart Grass LLC admitted in his plea deal that he failed to report about $8.9 million in gross income from the business over five years to avoid paying $946,479 in taxes.
Voyton also submitted phony W-9 Forms to many customers so their payments would not show as going to him or his business. Voyton was charged with tax evasion in June and pleaded guilty a month later.
Prosecutors said Voyton used some of the unreported income on himself such as using $63,000 from a business account to acquire cryptocurrency and spending $500,000 to acquire real estate in Nevada and Mexico.
Voyton's attorney, Nathaniel MacPherson, said his client has paid back the taxes plus penalties and interest. The total was $3.75 million.
"I'm guilty and however you decide to allocate the punishment would be judicious and fair," Voyton told U.S. District Judge John W. Holcomb.
Voyton said he had to convince many of his friends and family members from not attending Friday's hearing.
"They all wanted to be here in the courtroom today, but frankly, I've given them enough heartbreak," Voyton said, choking up.
"My parents didn't raise me like this," he said. "I'm 100% responsible for this. ... It's been quite a year outside of this process. The lessons have been numerous and will never be forgotten."
Assistant U.S. Attorney Charles Pell argued for a two-year sentence, pointing out that it was at the low-end of the federal court guidelines and that it would serve as more of a deterrence to others.
Pell noted Voyton "did what defendants should do when caught. ... He did pay everything back," but the two-year recommended sentence was the benefit for that.
But a lower sentence would send the wrong message, Pell argued.
"It looks like you can buy your way back" out of trouble, he said.
Holcomb said Pell "made some powerful arguments," and noted, "it is a significant crime. It is the kind of a crime that often goes undetected and unpunished."
But he settled on 15 months because of the "nonviolent nature of the crime" as well as the defendant's "remorse" and his eagerness to get back to running his company, Holcomb said.
"I wish you the best," he told the defendant. "I do appreciate what I regard as a sincere acknowledgement of the crime and sincere expression of remorse. ... I'm confident you'll emerge from this better and stronger."
Holcomb allowed Voyton until Jan. 8 to report for custody.
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