Man Sentenced to 5 Years in Federal Tax Evasion

A man who used to live in Hermosa Beach was sentenced Monday to five years in federal prison for failing to report nearly $1 million of income on his tax returns.

Joseph Ford Proctor, 66, raised money from investors in a company and then wired those funds to personal bank accounts used by his wife, whom he called his "walking tax shelter," according to Internal Revenue Service authorities.

Proctor of filing two false income tax returns—one in 2002 and then another in 2003, according to the IRS.

Evidence presented in the three-day trial showed that Proctor raised funds from investors for Powerhouse Studios, Inc. and Powerhouse Technologies Group, Inc.

Investors in those firms were told to send their investment funds to a bank account held in the name of Brickhouse Venture Capital Limited, which was a company opened in the name of Proctor’s brother, but Proctor directed how the funds were spent, officials said.

During Proctor’s trial, he testified that he thought he could take income he earned, place it in the name of his wife, who was a citizen of Thailand, and then not owe tax on that income.

Proctor has been held in federal custody since he was arrested in March.

— City News Service contributed to this report.