Two Adult Entertainment Executives With Offices in Cerritos and Santa Fe Springs Plead Guilty to Tax Charges

Two executives of an adult entertainment company with offices in Cerritos and Santa Fe Springs admitted falsifying tax returns and are facing possible prison time and stiff penalties, authorities announced today.

Oscar Macias, 36, of Anaheim pleaded guilty Monday in Los Angeles federal court to a count of filing a false individual tax return, according to U.S. Department of the Treasury Special Agent Linda Lowery.   

His former business associate, 34-year-old Catherine Shihad, also of Anaheim, pleaded guilty on Sept. 20 to a charge of filing a false tax return on behalf of the business where she and Macias worked -- Universal Media Management (UMM), Lowery said.  

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 Cerritos.

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

Macias received income from UMM that he did not report on his federal income tax returns, she said. The estimated lost tax revenue totaled about $33,000, according to the Internal Revenue Service.   

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

Macias 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.   

Shihad faces the same potential penalties when she is sentenced Nov. 28 by U.S. District Judge Stephen V. Wilson.

- City News Service contributed to this report.