Former IRS Agent, Son Indicted on 201 Counts : Bribery case: Pair allegedly accepted $400,000 over the last decade to help a grower evade tax payments.

SAN DIEGO — The U.S. attorney here has indicted a former IRS agent and his accountant son on 201 felonies, including bribery and money laundering, for allegedly accepting more than $400,000 over the last decade to help a large Imperial County grower evade tax payments.

The IRS agent, Robert A. Morales Sr.--a 30-year IRS employee--allegedly helped lettuce grower Mario Saikhon with tax issues in return for money paid to “ghost” employees and funneled to bogus firms allegedly set up by Robert A. Morales Jr., according to the indictment.

The indictment, the result of a two-year investigation, is the largest single bribery case in the history of the IRS, U.S. Atty. William Braniff said Wednesday. The indictment was handed down Friday and unsealed Wednesday.

“Morales Sr. was duty-bound to help make the system fair. Instead, in exchange for money, he betrayed his position and granted special favors to a few,” Braniff said.

Eugene Iredale, Morales Sr.’s attorney, said the only truthful item in the 48-page indictment was the spelling of his client’s name. Iredale also expressed outrage that the government’s efforts seemed to focus more vigorously on Morales, rather than Saikhon.

“It appears the Department of Justice is using the whip of justice on the little man and letting the large-scale malefactor escape,” Iredale said.

Mike Littman, lawyer for Morales Jr., said: “My client is not guilty of many of the charges. Others it’s too early to tell. My client, if he is involved, is a minor role. I don’t think he’s guilty.”

Braniff said Saikhon remains under investigation and officials decided to proceed with their case against the Morales pair.

“There were no deals,” Braniff added. “Saikhon’s case is just a more complex side. We’re talking about . . . millions of dollars. There are no deals.”

Reached at his Imperial County office, Saikhon refused to discuss the case after saying: “I don’t know anything about that.”

Saikhon is one of the largest farmers in Southern California. Over the last three years, income from Saikhon’s farming operations has grossed more than $90 million, according to the indictment.

Morales Sr., an El Cajon resident who retired last summer, abused his position by “controlling” and failing to properly audit tax returns during the last 10 years, Braniff alleged.

In exchange for tinkering with returns to help Saikhon evade tax payments, Morales accepted more than $400,000 in bribes from Saikhon, according to the indictment.

Charges against Morales Sr. include tax evasion; assisting the preparation of false tax returns; money laundering; conspiracy; official corruption, and aiding and abetting. If found guilty, Morales Sr. faces up to 13 years in prison and up to $50 million in fines, said Phillip Halpern, the assistant U.S. attorney who directed the investigation.

The Moraleses were arrested Wednesday and are being held without bail.