Two executives of an adult entertainment company with offices in Santa Fe Springs and Cerritos admitted falsifying tax returns and are facing possible prison time and stiff penalties, authorities announced Tuesday.

Oscar Macias, 36, of Anaheim pleaded guilty Monday in Los Angeles federal court to a count of filing a false individual tax return, U.S. Department of the Treasury Special Agent Linda Lowery said.

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His former business associate, 34-year-old Catherine Shihad, also of Anaheim, pleaded guilty Sept. 20 to a charge of filing a false tax return on behalf of the business where she and Macias worked — Universal Media Management, Lowery said.

During the 2003-2005 tax years, UMM’s business consisted of providing live adult entertainment to  customers who made cash payments to the company, Lowery said.

Macias received income from UMM that he did not report on his federal income tax returns, she said. The estimated lost tax revenue totaled about $33,000, according to the Internal Revenue Service.

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Lowery said Shihad caused the tax preparer to prepare a federal corporate income tax return for the fiscal year ending Sept. 30, 2004, which contained false information.

UMM’s net income was substantially more than the amounts reported on the 2004 tax return. The estimated lost tax revenue totaled about $140,000, according to the IRS.

Macias faces a possible maximum of three years in federal prison and a fine of $250,000 when he is sentenced by U.S. District Judge Margaret M. Morrow on Jan. 9, Lowery said.

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Shihad faces the same potential penalties when she is sentenced Nov. 28 by U.S. District Judge Stephen V. Wilson.