May 20, 2002

FORMER RIVERSIDE COUNTY JUICE MAKER
SENTENCED TO PRISON FOR FILING FALSE TAX RETURN

 A former Riverside County juice manufacturer and distributor was sentenced today to 18 months in federal prison for filing a false income tax return with the Internal Revenue Service.
 Glen F. Richey, 65, of Winchester, California pleaded guilty last year to filing a false tax return for the year 1989. In a plea agreement filed in United States District Court in Los Angeles, Richey admitted that he defrauded the United States Treasury of income taxes totaling more than $462,000 on tax returns he filed for the 1987, 1988 and 1989 tax years.
 Richey formally pleaded guilty to filing a false tax return for only one year, but at sentencing United States District Judge Terry J. Hatter Jr. was able to take into account the other two years. In addition to the prison term, Judge Hatter ordered Richey to pay a $24,000 fine and to pay all back taxes due to the government.
 During the time of the criminal conduct, Richey operated under the brand names “Frosty Fruits,” “J.Rich,” “R&M Distributing,” and the “Juice Factory.” In the early 1990s, Richey’s juice business was the largest producer of fresh fruit juice in California. The juice business operated in Westminster from 1984 to 1990 before moving to Beaumont, California and operating at that location from 1990 to 1993.

 In his plea agreement, Richey admitted that he filed tax returns in 1995 in which he falsely reported that he only had losses in his juice business and did not owe any taxes. Richey in fact had earned a substantial income from his business, which he used to make investments and to pay for personal expenses. Richey admitted that he spent $2 million during the years 1987 through 1991 to purchase, raise and breed Peruvian Paso horses, and to maintain the Winchester ranch where the horses were located.
 Richey also admitted that he cashed checks totaling $800,000 that were made out to his business, and spent over $200,000 towards the purchase and maintenance of agricultural properties in San Diego County.
 The case against Richey is the result of an investigation by IRS-Criminal Investigation.

 Release No. 02-082

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