Milton C. Grimes, a Los Angeles attorney, has been sentenced to 18 months in federal prison for evading more than $7.2 million in taxes over two decades. The sentence was handed down by United States District Judge Stanley Blumenfeld Jr., who also ordered Grimes to pay $7,236,556 in restitution to both the IRS and the California Franchise Tax Board.
Grimes pleaded guilty in October 2024 to one count of tax evasion related to his 2014 taxes, admitting he failed to pay $1,690,922 to the IRS. Acting United States Attorney Joseph T. McNally commented on the case: “Despite being a respected attorney, Mr. Grimes also made the deliberate decision to cheat on his taxes for decades.”
Special Agent in Charge Tyler Hatcher from IRS Criminal Investigation noted that Grimes was aware of his tax obligations but chose not to comply. "Despite multiple attempts by the IRS to help him settle his tax obligations," Hatcher stated, "Mr. Grimes continued to obfuscate his income."
Grimes failed to pay federal income taxes for several years between 2002 and 2023, accumulating a debt of $5,921,260 with penalties and interest owed to the IRS. Additionally, he owed over $1,313,231 in state taxes from 2014 through 2023.
The IRS had attempted since September 2011 to collect these taxes by issuing levies on Grimes' personal bank accounts. From May 2014 until April 2020, however, Grimes avoided payment by not depositing client earnings into accounts subject to levy. Instead, he purchased approximately 238 cashier’s checks totaling $16 million.
IRS Criminal Investigation conducted the investigation into this matter with Assistant United States Attorneys Valerie L. Makarewicz and Sarah S. Lee prosecuting the case.