LOS ANGELES – A brazen scheme to cheat the U.S. government out of millions has unraveled in the heart of the Fashion District. Sang Bum “Ed” Noh, 66, of Bel Air, and his company, Ambiance Apparel, are poised to admit guilt to a complex web of customs violations and tax offenses, agreeing to a staggering $117,897,708 in penalties. The feds finally caught up to Noh, a man who built a business on lies and a calculated disregard for the law.
Federal prosecutors unveiled the charges and accompanying plea agreements Tuesday, detailing how Ambiance Apparel – operating as Ambiance U.S.A. Inc. and Apparel Line U.S.A., Inc. – systematically undervalued imported garments. The operation, spanning over 4 ½ years, allowed the company to dodge over $17.1 million in tariffs. The scheme involved dual invoices: one reflecting a legitimate price paid via letter of credit, and a second, drastically reduced invoice submitted to U.S. Customs and Border Protection (CBP). The difference, a whopping $82.6 million in undervalued goods, was paid through wire transfers, hidden from the authorities. Ambiance and Noh will pay $18.42 million to CBP, including accrued interest.
But the tariff evasion was only half the story. A parallel investigation revealed a massive cash-skimming operation. Ambiance deliberately failed to report over 364 cash transactions exceeding $10,000 – totaling more than $11.1 million – to the Secretary of the Treasury. The company maintained two sets of books, one clean for the accountants, and a second, shadowy ledger detailing unreported cash sales. Noh personally directed the underreporting of sales on 2011 and 2012 tax returns, concealing income and avoiding his tax obligations.
The entire operation came crashing down in September 2014, when law enforcement executed a barrage of search warrants throughout the Fashion District. The investigation targeted money laundering and other illicit activities within the area’s businesses. The seized evidence, including nearly $36 million in cash, painted a clear picture of systematic fraud. Noh now faces a statutory maximum of eight years in federal prison after pleading guilty to one count of conspiracy and one count of subscribing to a false tax return.
Ambiance Apparel itself will plead guilty to eight felony counts, including conspiracy, money laundering, and multiple customs offenses. Upon entering the guilty pleas, the company anticipates a five-year probationary period, during which it will be forced to implement a rigorous anti-money laundering compliance program, overseen by an external monitor. This isn’t just about money; it’s about accountability. The message is clear: cheat the system, and you *will* pay the price.
Noh and Ambiance are scheduled to appear for arraignment on September 14 in United States District Court. The IRS is due more than $16.8 million in unpaid taxes, penalties, and interest. The Grimy Times will continue to follow this case and bring you the latest updates as this saga unfolds.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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