Granite Bay Man Sentenced for $4.5M Fraud Scheme

A 48-year-old Granite Bay man who formerly managed investments for several NBA players, will serve 16 months for allegedly submitting fraudulent tax return and car loan claims totaling $4.5 million.

Larry Harmon reportedly submitted thousands of phony requests with the California Board of Equalization that would have cost $4.5 million, if successful, according to the California Department of Justice.

Harmon owns Larry Harmon & Associates and represented financial institutions seeking sales tax refunds from the BOE, according to the department.

From the Department of Justice: 

“Defrauding state government is equivalent to stealing taxpayer dollars,” Attorney General Kamala D. Harris said in a news release. “I applaud the cooperation between my office and the Board of Equalization to stop this scheme before any losses occurred.”

“Those who cheat and defraud our tax system impose a selfish and unfair tax increase on their fellow Californians,” said Board of Equalization Member George Runner. “It’s only right that they be brought to justice.”

Harmon, who was sentenced Tuesday in Sacramento Superior Court to 16 months in county jail, was arrested in January on 10 felony counts of false claims and forgery. Harmon formerly managed investments for several NBA players, including Carmelo Anthony of the New York Knicks and Ben Gordon of the Charlotte Bobcats.

As owner of Larry Harmon & Associates, Harmon represented financial institutions seeking sales tax refunds from the BOE. A lender is entitled to submit a refund request to BOE when an individual defaults on a car loan and the vehicle is repossessed.

DOJ agents determined that Harmon created fraudulent bank documents and loan papers, along with a shell company called Premier Capital Finance. He submitted these documents to BOE to request refunds for non-existent banks, including Premier Capital Finance. He also fabricated letters from his attorney attesting to the validity of his paperwork. 

At the time of the search warrant and arrest, DOJ and BOE agents discovered additional fraudulent documents that indicated he was in the process of creating two additional false claims, each for more than $5 million.  

The Board of Equalization and the Attorney General’s Bureau of Investigation routinely combine resources to investigate fraud and tax schemes perpetrated against the State of California as part of a joint effort to combat underground economy crimes.