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O.C. Couple Indicted for Tax Evasion

August 16, 2000|DAVID HALDANE | TIMES STAFF WRITER

The owners of a Santa Ana business that manufactures aircraft parts were indicted for conspiracy and tax evasion Tuesday after allegedly overstating their costs by nearly $1.9 million.

They also were accused of spending some of the saved tax money on a luxury vacation home in Florida and shopping sprees at an expensive department store.

Michael R. and Carol A. Molus, a married couple living near Newport Beach, were indicted by a grand jury in San Diego in connection with their operation of Mexmil Co., which manufactures aircraft fuselage insulation blankets in Mexicali, Mexico, for Boeing Co., and McDonnell Douglas, now a part of Boeing.

"It's a pretty large case," said Danny R. Roetzel, an attorney for the U.S. Department of Justice who is prosecuting the matter.

Neither Michael nor Carol Molus could be reached Tuesday. Frank Swan, an attorney representing Carol Molus, declined to comment.

According to the indictment, the couple filed false income tax returns from 1991 to 1994, fraudulently overstating the cost of manufacturing the aircraft parts they were selling and thereby reducing the amount of taxes they owed.

In addition to purchasing and decorating the vacation home in Boca Grande, Fla., and engaging in shopping sprees at Neiman Marcus, the indictment says, the couple gave some of the money to three sons, a nephew and an employee, none of whom reported the income on their federal tax returns.

All five were indicted for conspiracy to defraud the government. They are Mark S. Molus, Matthew K. Molus and Rick Molus, the couple's sons, as well as nephew Jason C. McCann and employee Dwayne L. Ellison.

None could be reached for comment late Tuesday.

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