Coronado Resident Sentenced for Shell Company Scheme

A San Diego attorney and Coronado resident was sentenced Thursday to 10 months in federal prison for evading taxes on at least $3 million in unreported income from 2000 to 2002.

Craig Shaber, who was indicted on conspiracy and tax evasion charges in August 2009, and who pleaded guilty last October, fraudulently acquired control of numerous public shell companies between 1999 and 2002, according to the Department of Justice.

Prosecutors said Shaber, along with San Diego accountant Steven Wright, earned millions of dollars from the sale of those public shell companies and deposited the proceeds into numerous banks accounts.

Together, the men received $260,000 in cash from the sale of one of those companies, according to court documents.

According to the Department of Justice, Shaber also filed false individual federal income tax returns from 2000 to 2002 that failed to report income earned from the shell company scheme.

Shaber used the profits from the scheme to buy numerous luxury items, including his personal residence in Coronado, a McDonnell Douglas helicopter, a World War II-era Tigercat airplane, a Porsche 996 Turbo and artwork, prosecutors said.

Shaber was also ordered to pay $555,000 in restitution to the Internal Revenue Service.

City News Service contributed to this report