Adult Entertainment Exec With Cerritos Based Office Sentenced to Probation for Tax Fraud

A 34-year-old executive of an adult entertainment company with offices in Cerritos and Santa Fe Springs was sentenced today to probation and restitution for falsifying a tax return.

Catherine Shihad of Anaheim pleaded guilty in September to a charge of filing a false tax return on behalf of the business where she worked -- Universal Media Management, Lowery said.

She was sentenced by U.S. District Judge Stephen V. Wilson to three years probation and ordered to pay restitution of $140,000, according to Assistant U.S. Attorney Angela J. Davis.

During the 2003-2005 tax years, UMM's business consisted of providing live adult entertainment to customers who made cash payments to the company,
said Internal Revenue Service spokeswoman Linda Lowery.

According to the California Secretary of State, UMM formed on Dec. 1, 2003 and the business address is listed as 13337 South St. #306. During a visit to this address, Patch discovered that this location is currently “,” which offers mailbox services. Lowery told Patch that she did not have immediate information on a physical business address in the city.

Shihad caused a tax preparer to prepare a federal corporate income tax return, which contained false information, for the fiscal year ending Sept. 30, 2004, Lowery said.

UMM's net income was substantially more than the amounts reported on the 2004 tax return. The estimated lost tax revenue totaled about $140,000,
according to the IRS.

A co-defendant, 36-year-old Oscar Macias, also of Anaheim pleaded guilty two months ago to a count of filing a false individual tax return and will be sentenced on Jan. 9. He faces a possible maximum of three years in federal prison and a fine of $250,000 when he is sentenced by U.S. District Judge Margaret M. Morrow on Jan. 9, Lowery said.   

- City News Service and MarieSam Sanchez contributed to this report.