Michael Q. Fu, 53, of Cranbury Township, New Jersey, was sentenced to 37 months in federal prison today for orchestrating a multi-year tax evasion scheme that hid over $1.5 million in income. The money was funneled through overseas shell companies tied to Fu and his business partner, Albert W. Chang, 69, of Princeton Junction, New Jersey, according to U.S. Attorney Paul J. Fishman.
Fu pleaded guilty to one count of conspiring to evade income taxes and one substantive count of tax evasion before U.S. District Court Judge William H. Walls in Newark federal court. The charges stem from operations at United Products and Instruments Inc. (UNICO), a Dayton, New Jersey-based firm founded by Fu and Chang in 1991 that specialized in exporting medical microscopes and centrifuges.
As part of the conspiracy, Fu and Chang established two shell entities—Action Towers and Bench Top Laboratories—based in China. They used these fronts to siphon business revenue by directing UNICO to pay inflated costs for goods and commissions, which were then deducted from the company’s tax filings. The diverted funds flowed into accounts controlled by the pair, bypassing IRS scrutiny entirely.
The fraud extended further through collusion with Shanghai Electric, a Hong Kong-based utility. The company inflated invoices to UNICO by roughly five percent. After UNICO paid the bills, the excess funds were wired back to personal accounts in China, all without reporting the income on federal tax returns. The full extent of the scheme remained undetected for years.
In addition to 37 months behind bars, Judge Walls ordered Fu to serve three years of supervised release and pay restitution totaling over $870,000. The sentence holds him accountable for both his leadership role in the conspiracy and the direct financial harm inflicted on the U.S. Treasury.
Chang, Fu’s co-conspirator, pleaded guilty in September 2016 and is awaiting sentencing. The investigation was led by IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Springfield Police Department. The case was prosecuted by Senior Litigation Counsel Margaret Ann Mahoney. Fu was represented by Steven Seltzer, Esq., of New York, New York.
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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