2 Convicted of Pocketing $1 Million in Fuel Taxes

A federal court jury Wednesday convicted two Russian immigrants, one from Sherman Oaks, of conspiracy and tax evasion in a scheme that siphoned off more than $1 million in federal gasoline taxes using a dummy corporation.

Oleg Yasko, 38, of Sherman Oaks, and Boris Lomazov, 47 of San Francisco, were found guilty in the so-called “daisy chain” scheme that apparently was originated by an East Coast organized crime family, prosecutors said. U.S. District Judge Spencer Letts increased Lomazov’s bail from $50,000 to $100,000 and ordered Yasko to jail to await sentencing Sept. 12. Both face a maximum prison sentence of 10 years.

Prosecutors alleged that between May and August, 1987, Yasko, Lomazov and the other men bought 14 million gallons of gas for $11 million and pocketed $1.3 million in federal excise taxes.