Ai Shu Cheng, Filing False Income Tax Returns, Texas 2016

LUBBOCK, Texas — Ai Shu Cheng, 52, of San Angelo, Texas, was sentenced to 36 months in federal prison last week, following his guilty plea in December 2016 to two counts of filing a false income tax return.

According to the U.S. Attorney’s Office for the Northern District of Texas, in December 2016, Cheng pleaded guilty to two counts of filing a false income tax return.

In addition to his prison sentence, Judge Cummings ordered Cheng to pay $1,767,566.46 in restitution to the Internal Revenue Service.

Cheng was ordered to surrender to the Bureau of Prisons on May 26, 2017.

The case was investigated by the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ann Cruce-Haag.

As part of his plea agreement, Cheng admitted that in 2011 he filed an individual Income Tax Return, Form 1040, for the tax year ending December 31, 2010 and under-reported his total income.

Cheng reported a total income of $208,652.00, but his actual income was approximately $696,148.68, resulting in a tax loss to the Internal Revenue Service in the amount of approximately $165,108.00.

Similarly, in 2013, Cheng filed an individual Income Tax Return, Form 1040, for the tax year ending December 31, 2012 and again under-reported his total income.

Cheng reported a total income of $186,486.00, but his actual income was approximately $600,976.82, resulting in a tax loss to the Internal Revenue Service in the amount of approximately $145,072.00.

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