California Franchise Tax Board special agents arrested a Tarzana man on five counts of filing fraudulent state income tax returns. Nicholas A. Francisco (59), the owner of a check cashing business, allegedly failed to report more than $3.5 million in income on his 2003 – 2007 state income tax returns. At the present time, Francisco owes the state more than $735,000 in unpaid tax, interest, and penalties. The cost of the tax investigation, however, will be added to this amount and sought as restitution. In addition, each tax count carries a maximum sentence of three years in state prison.