The Robert E. Coyle Federal Courthouse in downtown Fresno. Archive photo

Pilar Rose, 51, formerly of Fresno, pleaded guilty Monday to tax fraud and obstructing an IRS audit, U.S. Attorney Phillip A. Talbert announced.

Rose also agreed to forfeit his interest in more than $2.5 million in proceeds from the sale of his mansion and that of his BMW, which authorities had previously seized.

According to court records, from 2012 to 2015, Rose prepared false financial statements for her husband’s orthodontic practice that significantly understated the practice’s profits. As a result, Rose evaded more than $870,000 that she and her husband owed in federal taxes.

Then, in early 2016, Rose obstructed an IRS audit of her and her husband’s taxes. She altered hundreds of checks intended for the couple’s nondeductible personal expenses, such as their mortgage, utilities, landscaping, pool cleaning, cars, credit cards and children’s college tuition. , to give the impression that the checks were for deductible business expenses. She also created false financial statements for her husband’s orthodontic practice to match the altered checks. She provided the altered checks and false financial statements to IRS auditors in an attempt to avoid paying the federal taxes she and her husband actually owed.

In June 2015, Rose applied for a $1.5 million mortgage refinance loan for the couple’s mansion on Van Ness Boulevard in Fresno. To assure the bank of their creditworthiness and induce it to make the loan, Rose submitted copies of her and her husband’s federal income tax returns, which showed income significantly higher than that reported on the actual returns they had filed with the IRS. The bank refused the loan after discovering the discrepancies.

Then, in July 2015, Rose applied to a second bank for a $1.47 million mortgage refinance loan on the Van Ness Boulevard residence. In the application, she said their bank accounts had a combined balance of more than $250,000 when they actually had less than $3,000. She also submitted copies of her and her husband’s federal tax returns, as well as a profit and loss statement, which significantly exaggerated the profitability of her husband’s orthodontic practice. As a result, the second bank approved the loan and Rose and her husband received $1.47 million to which they were not entitled. Authorities then seized the residence.

Additionally, in September 2017, Rose purchased a new BMW sedan for around $90,000. She made a $25,000 down payment and financed the remaining $65,000 through a loan she obtained from a third bank. In the loan application, Rose stated that she was an attorney who made more than $600,000 a year when she was actually not an attorney. She also used the Social Security number belonging to her husband’s former dental school classmate because she knew that using his real SSN would give her a low credit score, which would have could disqualify her from the loan. As a result, the loan was approved and Rose received more than $65,000 to which she was not entitled. Authorities then seized the BMW.

This case is the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Joseph Barton, Michael Tierney, Alyson Berg and Kevin Khasigian are prosecuting the case.

Rose is scheduled to be sentenced on March 17, 2025. She faces a maximum statutory penalty of five years in prison and a $100,000 fine for tax evasion, as well as an additional three years in prison and a $5,000 fine for obstruction.