Beverly Hills Man Who Resold Charity Clothing Admits To $1M In Tax Evasion: DOJ

BEVERLY HILLS, CA — A Beverly Hills businessman on Tuesday pleaded guilty to evading more than $1 million in taxes over more than a decade, according to federal court documents.

Haim Jerry Kohen, of Beverly Hills, owned and operated a business identified in court documents only as "Business 1." The company "bought bulk quantities of used clothing from charities and re-sold the used clothing to sorting companies in Los Angeles and to international buyers," reads a filing from the U.S. Attorney's Office.

Kohen attempted to conceal the income from the business by diverting it to himself and by dealing in cash, according to the U.S. Attorney's Office.

In one instance, he underreported his business' income by diverting cash payments from a "significant customer." In November 2013, when that customer owed the business $648,000, Kohen and the customer inked a promissory note where the customer agreed to repay the debt to Kohen personally. He did not report the payments on any tax return, according to prosecutors.

Kohen also did not report rental income from two properties he owned in Beverly Hills and Tarzana, prosecutors said.

In total, prosecutors said that Kohen caused a tax loss to the IRS and the state of at least $1,196,802.

Kohen is set to be sentenced on Oct. 1. He faces a maximum sentence of five years in prison, according to the U.S. Attorney's Office.