The owners of a Bakersfield auto dealership pleaded guilty Monday to felonies involving the failure to file IRS forms required for cash transactions over $10,000, according to the U.S. Attorney's news release.
Ramiro Catano, 51, and his brother Tereso Catano Casas, 49, co-owned Catano’s Auto Sales and Repair in Bakersfield. They face prison terms of five years and three years, respectively, at their July 10 sentencing.
On April 2, 2013, an undercover federal agent purchased a vehicle for $12,000 cash from the dealership and requested that the dealership not file a legally required form on the transaction, according to the release from the U.S. Attorney's Office for the Eastern District of California.
The undercover agent also told Ramiro Catano that the cash used to purchase the vehicle was from the sale of cocaine, the release said. Following the sale, the defendants did not file the required form on the transaction.
On July 26, 2013, an undercover federal agent purchased a vehicle for $16,000 cash from the dealership and requested that the dealership not file the required form. The defendants didn't file it, the release said.
Ramiro Catano pleaded guilty to conspiring to not file a Form 8300, and Tereso Catano Casas pleaded guilty to failing to report a felony because he knew that not filing the form was a felony and failed to tell the proper authorities, the release said.
As part of the plea agreement, the defendants have agreed to pay a $28,000 forfeiture money judgment.