A Huntington Beach resident who owned a military contracting business pleaded guilty Monday for failing to report millions of dollars his company received from the U.S. military for services it provided in Iraq.

Nadim "Nick" Saifan Jr., 48, pleaded guilty to two of five charges of attempted tax evasion contained in an indictment returned by a federal grand jury in 2011, according to a statement from the U.S. Attorney's Office in Santa Ana.

Saifan pleaded guilty to "substantially underreporting" his company's income for its 2005 corporate tax return and his personal tax return for 2006, according to the statement.

Prosecutors stated that Saifan owes at least $4.5 million in unpaid corporate and personal taxes, and that he caused a loss of at least $7 million to the government, according to the statement.

U.S. District Judge Cormac J. Carney is scheduled to sentence the defendant Aug. 18. Saifan faces a maximum sentence of 10 years in federal prison.

Carney revoked the defendant's bond and remanded him into federal custody until his sentencing, according to the statement.

Saifan was the owner of Defense Logistical Support & Services Corp., a Huntington Beach-based military contractor. The business had a station at Camp Brooklyn, near the Baghdad airport, that provided services for the U.S. military and civilian companies in Iraq, according to a trial memorandum.

His company received about $16 million from the military for various services it provided from August 2004 to October 2007. However, Saifan reported only a fraction of that income on the company's tax return, according to the statement.

Additionally, federal prosecutors alleged that Saifan used portions of that income to pay for personal expenses, such as making about $880,000 in down payments on real estate and using about $292,000 for vehicles, including a Ferrari and a Rolls-Royce.

—Anthony Clark Carpio

Twitter: @acocarpio