Robert E. Coyle Federal Courthouse in downtown Fresno. File photo

Pilar Rose, 51, formerly of Fresno, pleaded guilty Monday to tax evasion and obstructing an IRS audit, U.S. Attorney Phillip A. Talbert announced.

Rose also agreed to relinquish her interest in more than $2.5 million in proceeds from the sale of her and her husband’s mansion and the BMW that authorities had previously seized.

According to court records, from 2012 to 2015, Rose prepared false financial statements for her husband’s orthodontic practice that significantly understated the practice’s profits. As a result, Rose claimed more than $870,000 that she and her husband owed in federal taxes.

Then, in early 2016, Rose obstructed an IRS audit of her and her husband’s taxes. She altered hundreds of checks that were for the couple’s non-deductible personal expenses, such as mortgage, utilities, landscaping, pool cleaning, cars, credit cards and children’s tuition, to make it appear that the checks were for deductible business expenses . She also created false financial statements for her husband’s orthodontic practice to match the altered checks. She provided the forged checks and false financial statements to IRS auditors to try to avoid paying the federal taxes she and her husband actually owed.

In June 2015, Rose sought a $1.5 million mortgage refinance loan for the couple’s Van Ness Boulevard mansion in Fresno. To assure the bank of their creditworthiness and to get the bank to grant the loan, Rose sent copies of her and her husband’s federal tax returns, which showed significantly higher income than was reported on the actual returns they filed with IRS. The bank refused the loan after discovering discrepancies.

Then, in July 2015, Rose applied to a second bank for a $1.47 million mortgage refinance loan on the Van Ness Boulevard residence. In the application, she showed that their bank accounts had a combined balance of more than $250,000, when they actually had less than $3,000. She also submitted copies of her and her husband’s federal tax returns and a profit and loss statement that significantly overstated the profitability of her husband’s orthodontic practice. As a result, the second bank approved the loan, and Rose and her husband received $1.47 million to which they were not entitled. Authorities later seized the home.

Moreover, in September 2017, Rose purchased a new BMW sedan for about $90,000. She made a down payment of $25,000 and financed the remaining $65,000 through a loan she obtained from a third party bank. In the loan application, Rose stated that he was a lawyer making more than $600,000 a year, when in fact he was not a lawyer. She also used the social security number belonging to her husband’s former dental school classmate because she knew that using her real SSN would result in a low credit score, which could have disqualified her from upon receiving the loan. As a result, the loan was approved, and Rose received more than $65,000 to which she was not entitled. Authorities later impounded the BMW.

This case is the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Joseph Barton, Michael Tierney, Alyson Berg and Kevin Khasigian are prosecuting the case.

Rose is scheduled to be sentenced on March 17, 2025. She faces a maximum statutory penalty of five years in prison and a $100,000 fine on the tax evasion charge and an additional three years in prison and a $5,000 fine on the obstruction charge.