Business Owner Pleads Guilty to Tax Fraud | AccountingWEB

Business Owner Pleads Guilty to Tax Fraud

A Garden Grove, California, business owner who built small electronic airplane parts for C5 cargo planes and F18 fighters has pleaded guilty to tax fraud.

Shann Mou Lee, 69, of Buena Park, owner and operator of Roger Industry located in Garden Grove, pleaded guilty to a one-count criminal information charging him with subscribing to a false income tax return.
 
According to the plea agreement, in April 2010 Lee and his wife filed a joint 2009 federal income tax return, failing to report income received from Roger Industry. On this return, Lee stated that his total income was $347,536, omitting income received from Roger Industry of $124,949. The unreported income caused a tax loss to the government of $39,046.
 
Lee further admitted that because of his failure to report income for the 2008, 2009, and 2010 calendar years, he owes a total of $67,573 in income taxes to the IRS.
 
When sentenced on January 14, 2013, Lee faces a statutory maximum sentence of three years in federal prison.
 
The investigation and prosecution of Lee was conducted by IRS - Criminal Investigation in conjunction with the United States Attorney's Office in Santa Ana.
 
Source: September 12, 2012, US Department of the Treasury News Release
 
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