Chieu K. Tran, Tax Evasion and Obstruction, Tennessee 2023

Nashville, TN – In a shocking case of financial deceit, Chieu K. Tran, 54, of Nashville, the owner of Signature Nails Spa, was arrested by IRS Criminal Investigation Agents at his home on April 4, 2024, and charged with tax evasion and obstruction of justice charges.

Tran, who has been the owner and operator of Signature Nails Spa in Nashville, allegedly paid his employees, approximately 25-50 nail technicians, a wage of $10.5 million over four years (2014-2018). However, he paid them 50% in cash and 50% by check, with no records of the cash payments. This lack of record-keeping is a clear sign of his intentional attempt to evade taxes.

The indictment by Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee alleges that Tran did not file federal employment tax returns, report his employees’ wages, or withhold employment taxes. This lack of compliance resulted in a tax loss of over $542,000.

Additionally, the indictment claims that while knowing the IRS was investigating him, Tran instructed his employees to lie to the IRS about the cash payments they received as wages. This obstruction of justice charge is a serious offense that carries a maximum sentence of 5 years in prison and a fine of up to $250,000.

Tran has been charged with eight counts of tax evasion and employment tax fraud, as well as one count of obstruction of justice. He will appear before a U.S. Magistrate Judge later today.

If convicted, Tran faces up to 5 years in prison on each tax evasion and employment tax fraud count and up to 2 years on the obstruction count. He also faces a fine of up to $250,000.

This case serves as a reminder of the importance of tax compliance and the consequences of tax evasion. The IRS-Criminal Investigation is committed to uncovering and prosecuting individuals who attempt to cheat the system.

Tran’s case is a stark reminder that tax evasion and obstruction of justice will not be tolerated. The people of Tennessee deserve honest and transparent business practices, and we will continue to work tirelessly to ensure that justice is served.

An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.

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