SAN BERNARDINO, Calif.  – Two Chino Hills men have been charged with multiple counts of felony and misdemeanor tax evasion.

On Jan. 31, investigators from the San Bernardino County District Attorney’s Workers’ Compensation Insurance Fraud Unit arrested Michael Eugene Mulligan, 55, and Nathan Paul Woodle, 39, for failing to report income given to employees working at the Stress-O-Pedic mattress manufacturing company in Ontario.

The investigation revealed that Mulligan and Woodle were paying some of their employees cash for working at Stress-O-Pedic without reporting the transactions to the California Employment Development Department.

"Our tax system relies on the honesty of taxpayers, so whenever someone purposely avoids paying their taxes, we will pursue this matter to protect the millions of Americans who comply with the law," District Attorney Michael Ramos said.

Following arrest, both Mulligan and Woodle were booked at West Valley Detention Center in Rancho Cucamonga. Bail was set at $75,000 for each man. Deputy District Attorney Scott Byrd will prosecute this case.

Mulligan was charged with four counts of felony tax evasion and Woodle was charged with two misdemeanor counts of tax evasion. If convicted as charged, Mulligan faces five years in county prison and Woodle faces one year in county jail.