For the past two years, we've detailed numerous allegations of fraud and deception against a Bakersfield furniture store. Tonight, the man who runs that store...behind bars.

"Mr. Rios any comment?"

Cuffed and taken away by a district attorney investigator, America's Furniture Store president Juan Rios, hauled off to jail.

"How much trouble is Mr. Rios in?" "Very serious trouble," said Deputy District Attorney John Mitchell, who is prosecuting the case.

In a 14 count complaint, Rios is accused of 13 felonies, including perjury, forgery, intimidation of witnesses and victims and grand theft.

"He tried to screw over these people a lot, a lot of people would just walk out. We had no happy customers that I ever remember," said former store employee Ron Reece.

As we detailed in February, former America's Store manager Ron Reece claimed Rios has a system for fraudulently making money, primarily substituting cheap furniture for what a customer really ordered.

"Let's order this one and charge us for this one. The guy will pay the price for the nice one, but he gets the knock off. It just happens all the time, that's his main plan in sales, said Reece."

But there's more, much more. Once contacted by the DA's office, the State of California Employment Development Department opened their own investigation.
In this very detailed 16-page report, Rios is accused of reporting he had "no payroll. In other words, no employees working for him.

As a result, the E.D.D. investigation alleges Rios filed fraudluent returns, failed to pay unemployment insurance, workers comp or witholding taxes dating back to 2006. "Juan Rios was actively involved in the processing and payment of cash wages and unreported payroll."


The state alleges he undereported wages by at least $52,000 in 2007 alone. But Rios' troubles don't end there. The Board of Equalization, the state's tax collecting arm, launched its' own investigation. From November 2004 to February last year it concludes Rios never paid sales tax.

However, in numerous cases Rios filed in court against his own customers, furniture contracts included as evidence, showed time and time again he charged the sales tax.

"Frankly, he's a weasel. He's a weasel. He won't live up to his wrongdoings," says former customer Jamilla Cano.

Two years ago, former furniture store customer Jamila Cano contacted Eyewitness News, complaining about a bedroom set she we documented six small claims lawsuits filed against the furniture store won by customers in court.

The suits accused Royalty Furniture, now known as America's Furniture, of not delivering furniture paid for or delivering the wrong merchandise.

Now his days in the retail furniture business could be tabled for several years in prison. In fact, Deputy DA John Mitchell says Rios is looking at as many as six years behind bars. At least allegedly two employees told investigators they were paid cash under the table, never saw payroll checks or W-2's.