IRS Agent Indicted on Bribe Charge

An Internal Revenue Service agent was indicted by a federal grand jury Friday on charges of soliciting bribes from a lawyer and a certified public accountant in exchange for favorable treatment on tax returns.

Larry Lee Wilson was arrested after he accepted an envelope containing $15,000 on Sept. 18 from Century City lawyer Joseph D. Davis, who cooperated with IRS investigators.

Authorities said Wilson solicited a $25,000 bribe while conducting a routine audit of Davis’ tax returns last month.

“Wilson took Davis out into the hallway and told Davis he could save him over $100,000 for a $25,000 payment,” according to a criminal complaint filed after his arrest.

The attorney said he would think about it overnight. But, instead, he contacted the IRS and agreed to cooperate in a sting, the complaint said.

Wilson was taken into custody at Davis’ office after accepting the cash-filled envelope. During the exchange, which was secretly recorded by IRS investigators, Wilson allegedly repeated his bribe solicitation.

After reading a newspaper account of Wilson’s arrest, Daniel Lee, a Los Angeles certified public accountant, contacted the IRS and told them that he too had been solicited by Wilson.

The indictment charged that Wilson demanded $32,000 from Lee in 1997 to reduce the tax bill of a client who was undergoing an audit.

Wilson, 42, of Alhambra, is to be arraigned Oct. 26 in federal court on two counts of extortion, two counts of demanding bribes and one count of filing a false IRS form.

If convicted on all charges, he could be sentenced to a maximum of 41 years in prison and fined $1.25 million. He is free on $50,000 bond.