Newport man faces 71 felony charges

A Newport Beach man faces 71 felony charges for allegedly under-reporting the payroll of his Irvine construction business and failing to pay unemployment insurance, among other offenses, prosecutors said Tuesday.

George Osumi, 64, is expected to be arraigned on the charges Wednesday, according to the Orange County district attorney’s office.

Osumi allegedly created businesses under the names of family and close friends between 2001 and 2011 to avoid tax liability. He is also accused of fraudulently reporting to workers’ compensation insurance that his payroll was $3.5 million less than he actually paid.

Osumi also allegedly obtained an American Express credit card in his business partner’s name, making unauthorized purchases with it between 2004 and 2011, the D.A.’s office said.

Prosecutors said he distributed paychecks to employees with insufficient funds, despite running a business that earned income.

Osumi faces 18 felony counts of misrepresenting facts to the State Compensation Insurance Fund, 14 felony counts for failing to file a report with intent to evade taxes, 14 counts for willful failure to pay taxes, 14 felony counts for willful failure to pay unemployment insurance and employment training tax, nine felony counts for willful failure to pay disability insurance deductions, one felony count for identity theft and one felony count of perjury.

He faces a sentence ranging from probation to 63 years in prison, prosecutors said.

lauren.williams@latimes.com

Twitter: @lawilliams30