Hermosa Beach Couple Face Tax Charges

A married couple from Hermosa Beach are facing federal charges for allegedly conspiring to defraud the Internal Revenue Service by passing bogus checks and bonds as a way to escape debt.

Sean David Morton, 58, and his wife, Melissa Ann Morton, 50, were arrested Sunday in San Pedro after disembarking from a weeklong “Conspira-Sea Cruise,” in which various conspiracy theories were discussed while cruising the coast of Mexico, according to the U.S. Attorney’s Office.

An updated indictment filed in Los Angeles federal court alleges that Sean Morton filed a series of false income tax returns for the years 2005 and 2010 seeking millions of dollars in refunds, while his wife allegedly filed false returns for 2007.

The couple “caused multiple copies and multiple versions of their income tax returns to be submitted to various IRS service centers throughout the United States in 2009 and 2010,” according to the indictment, which alleges the Mortons attached false paperwork to support their claims for refunds.

The Mortons are each charged with counts of conspiracy to defraud the United States, making false claims to the United States, and submitting bogus securities and financial documents as a means to pay off debt.

“Driven by insatiable greed and a blatant disregard for the tax code, Mr. and Mrs. Morton have a long history of allegedly filing bogus tax returns and fictitious instruments claiming fraudulent refunds,” said Erick Martinez, special agent in charge of the IRS Criminal Investigation unit.

“People who create elaborate schemes that have no purpose other than to defraud the IRS run the very high risk of prosecution,” he said.

--City News Service, photo via Shutterstock