Pilar Rose, 51, formerly of Fresno, pleaded guilty today to charges of tax evasion and obstructing an IRS audit, the U.S. Attorney’s Office for the Eastern District of California announced.
Rose, who is accused of altering hundreds of checks to disguise personal expenses as deductible business costs, reportedly used these tactics to evade more than $870,000 in federal taxes. Among the nondeductible expenses she fraudulently claimed as business deductions were mortgage payments, utilities, landscaping, pool cleaning, car payments, credit card bills, and even her children’s college tuition.
In addition to the altered checks, Rose created false financial statements for her husband’s orthodontics practice, further inflating their financial picture to avoid paying taxes owed. The couple’s actions caused them to evade substantial tax liabilities over several years.
According to the department, Rose also attempted to secure fraudulent loans by submitting inflated financial documents. In June 2015, she applied for a $1.5 million mortgage refinance on the family’s mansion located on Van Ness Boulevard in Fresno. To support her loan application, she submitted falsified tax returns showing a much higher income than the returns filed with the IRS. The bank discovered the discrepancies and denied the loan.
However, in July 2015, Rose applied for a $1.475 million refinance loan from another bank, this time claiming that her bank accounts held more than $250,000—when, in fact, they held less than $3,000. She also presented exaggerated tax returns and fabricated profit-and-loss statements for her husband’s business. Based on this false information, the bank approved the loan, and the couple received the funds. Authorities later seized the property.
In September 2017, Rose purchased a $90,000 BMW sedan, making a $25,000 down payment and financing the remaining $65,000 through a loan from a third bank. In her loan application, she falsely claimed to be an attorney with an annual income exceeding $600,000. Additionally, she used the Social Security number of her husband’s former dental school classmate to avoid disclosing her own low credit score, which would have likely disqualified her from receiving the loan.
The bank approved the loan, and Rose received the $65,000. However, authorities later seized the BMW as part of the ongoing investigation.
Pilar Rose now faces criminal charges for her role in the extensive fraud scheme, which spanned several years. Her sentencing date has not yet been set, but the charges carry serious consequences, including potential prison time and financial restitution.
