The Franchise Tax Board (FTB) in the state of California has several tax cases during the year 2006. The first case I will address involves Saud S. Rayyis, (MD). Mr. Rayiss was 69 years old when he was sentenced to three years in state prison on April 17, 2006. He pleaded guilty to one count of tax fraud in February 2006. According to court documents, Rayiss was involved with a local health clinic in a organized operation scheme of accident activity. After failing to file state tax returns from 1998 to 2002, Rayyis claimed more than $4 million. In addition to the 3 years in state prison, the doctor will have to pay fines, restitution and penalties of up to $800,000. I firmly believe that Mr. Rayyis deserved his punishment and will consider filing state income tax returns in subsequent years. Deciding not to file your state tax return is unacceptable and unethical as a citizen of the state. Another FTB case led to the arrest of a Fontana, Southern California woman on May 2, 2006. Judi Ann Templeton, 61, was arrested on charges of tax evasion, filing false tax returns, and fraudulent obtaining of refunds. Judi was suspected of overstating medical and dental deductions on her family's tax returns from 1999 to 2001 and of writing a series of non-sufficient funds checks. Templeton's husband and children were unaware of the false statements and forged checks. She is charged with 10 counts of fraudulently obtaining refunds, 9 counts of filing false tax returns and one count of tax evasion. Templeton's actions resulted in a loss of more than $26,000 not including fines, interest and investigation costs. Each felony count carries a maximum sentence of three years in state prison. Judi's actual sentence is unknown... middle of paper... and will be split between the bankruptcy trustee, Hernandez and the intermediaries. Hernandez falsely characterized approximately 33 students as eligible to receive federal Pell Grants. Hernandez withheld approximately $72,525 from the program for personal use; however the total amount of his share in the program was approximately $200,000. I firmly believe that Hernandez had too much access to the system to falsify the federal financial aid application. Either he had too much access or someone knew what he was doing and gave him access. There were several “middlemen” who were persecuted, but only Hernandez was sentenced to prison. Once again, I believe that Hernandez's actions were wrong and that he should receive fines for prison time, but I also believe that Texas Tech University should review its internal controls and processes for submitting and signing applications federal financial aid.