Tax scam returns 71 months prison

A San Mateo finance manager who claimed a $5 million tax refund by reporting to have paid that much in income was sentenced Thursday to 71 months in federal prison on charges of mail fraud, filing a false tax return and false claims against the United States.

Seth Sundberg, 35, must also pay $2,488,613.38 in restitution, a $100,000 fine and a $300 special assessment. After his prison term, Sundberg will spend three years on supervised release.

"Let this be a warning to individuals who may be considering a similar crime — you will be caught and prosecuted to the fullest extent of the law,” said Scott O’Briant, special agent in charge for the IRS, in a written statement.

Sundberg was the branch manager for Access Mortgage and Financial in San Mateo and the principal for Sound Mountain Investments in San Carlos which specializes in investing and real estate property management, according to the criminal complaint.

According to the federal indictment, Sundberg’s 2008 tax return falsely claimed to have paid $5.73 million as a result of receiving "original issue discount” income and he, in May 2009, received a $5.08 million refund check. The check was deposited into a Borel Private Bank and Trust account in Sundberg’s name and he made more than $3.6 million in wire transfers. He also delivered $429,000 in cashiers checks to Acts Revival Center in San Jose.

A federal grand jury indicted Sundberg in September and he was arrested that same day in San Carlos. He has been held without bail since. On Jan. 8, he pleaded guilty to all counts.

He faced up to 18 years in prison and hefty fines collectively on all charges.