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LA Attorney Who Represented Rodney King Sentenced to Prison for Tax Evasion Scheme

Milton C. Grimes Ordered To Serve Time in Prison and Pay Restitution

Milton C. Grimes, a longtime Los Angeles attorney, was sentenced Monday to 18 months in federal prison for evading more than $7.2 million in federal and state taxes over a span of more than two decades. Grimes was a well-known lawyer who represented Rodney King in his lawsuit against the city of Los Angeles with a law office in the View Park-Windsor Hills District. 

U.S. District Judge Stanley Blumenfeld Jr. handed down the sentence and ordered Grimes to pay $7,236,556 in restitution to both the Internal Revenue Service (IRS) and the California Franchise Tax Board.

Grimes, who pleaded guilty in October 2024 to one count of tax evasion related to his 2014 taxes, admitted to failing to pay $1,690,922 to the IRS. Prosecutors said his tax evasion spanned multiple years, totaling $5,921,260 in unpaid federal taxes, penalties, and interest, in addition to more than $1.3 million owed to the state.

“Despite being a respected attorney, Mr. Grimes made the deliberate decision to cheat on his taxes for decades, evading millions of dollars that all citizens are required to pay,” said Acting U.S. Attorney Joseph T. McNally. “Tax fraud has a corrosive effect on society, and we appreciate the diligence of our IRS partners in bringing him to justice.”

The State Bar of California hasn’t suspended his license but has issued a consumer alert on its webpage about Grimes, noting that he has been charged with a felony. 

Special Agent in Charge Tyler Hatcher of IRS Criminal Investigation’s Los Angeles Field Office said Grimes repeatedly chose to evade his obligations despite multiple attempts by the IRS to resolve his tax debt. “Unfortunately for him, IRS Criminal Investigation special agents are the best financial investigators in the world, and now he will feel the repercussions of his actions,” Hatcher said.

Prosecutors said Grimes failed to pay federal income taxes for 23 years, including from 2002 to 2005, 2007, 2009 to 2011, and 2014 to 2023. The IRS attempted to collect the unpaid taxes by issuing more than 30 levies on his personal bank accounts starting in 2011. However, from at least May 2014 to April 2020, Grimes actively evaded payment by keeping his earnings out of accounts subject to IRS levies.

Instead of depositing his income into personal accounts, Grimes purchased approximately 238 cashier’s checks totaling $16 million. He withdrew cash from his client trust account, Interest on Lawyers’ Trust Accounts (IOLTA), and his law firm’s bank account to prevent the IRS from seizing the funds.

For example, on Dec. 5, 2018, Grimes deposited approximately $1,001,961 into his IOLTA account and immediately purchased nine cashier’s checks in the same amount, prosecutors said.

The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorneys Valerie L. Makarewicz and Sarah S. Lee of the Major Frauds Section prosecuted the case.

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