SAN DIEGO -- A San Diego used car dealer facing trial this summer for allegedly filing false tax returns for his business was arrested Wednesday on suspicion of understating the dealership's income.

Yousef Hoodneh, 60, faces two felony counts of state income tax fraud, according to the Franchise Tax Board.

Hoodneh is listed as the corporate officer of the Flamingo Car Group Inc. and Flamingo Automotive Inc., at 9485 Black Mountain Road, according to the state tax agency.

FTB agents allege that Hoodneh understated 2003 and 2004 corporate income by $6.5 million and failed to file a 2005 return reflecting $74,000 income.

Hoodneh's tax liability is allegedly $1.5 million without penalties, interest and investigative costs figured in.

He is scheduled to be arraigned at the San Diego County Courthouse Thursday and faces up to three years in state prison on each count if convicted.

The pending case, in which he faces seven felony counts of filing fraudulent state tax returns and two of aiding in the filing of false returns, is scheduled for trial on July 20.