JIN CHEN LIANG, Defrauding the Government, Wyoming 2022
A Corona, California man has been sentenced for his role in a scheme to defraud the government with revenue suppression software.
Jin Chen Liang, 62, was sentenced to five years' probation, with the first six months under home confinement, and ordered to pay a $200 special assessment and over $700,000 in restitution to the State of Wyoming and the IRS.
Liang, who developed, sold, and installed the software, was convicted of conspiracy to defraud the government in a hearing on August 16, 2022, before Chief United States District Court Judge Scott W. Skavdahl.
The software enabled several restaurants in Wyoming to conceal cash sales, facilitating the restaurant owners' under-reporting of the amount of sales tax owed to the State of Wyoming and the amount of income tax owed to the federal government.
The total amount of under-reported tax was approximately $2 million. Liang sold the software to individuals who owned restaurants in Casper, Cheyenne, Green River, Riverton, and Rock Springs.
Restaurant owners who bought and used Liang's software, Quyen Sam Ha, Soi Sam Ha, and Jenn Sam Ho, were previously convicted of wire fraud and conspiracy to defraud the government.
'This was the culmination of an investigation that began in 2016 and involved multiple Wyoming restaurants,' said Acting United States Attorney Nicholas Vassallo. 'The crime facilitated by Liang's software harmed not only the State of Wyoming, but it also created an unfair advantage over law-abiding restaurant owners who lawfully paid state and federal taxes.'
'The use of revenue suppression software to hide your income is a crime against not only the federal government, but all honest taxpayers,' said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. 'IRS Criminal Investigation special agents are experts in uncovering sophisticated tax avoidance schemes, and we will continue to pursue individuals and organizations attempting to avoid their tax obligations.'
This crime was investigated by Internal Revenue Service Criminal Investigation, Wyoming Division of Criminal Investigation, the Wyoming Department of Audit, and the California Department of Tax and Fee Administration.
Assistant United States Attorney Stephanie I. Sprecher prosecuted the case.
Case No. 21-cr-00068-SWS
Key Facts
- State: Wyoming
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →