SAN FRANCISCO – In a stunning reversal of fortune, Howard Hsu and his mother, Tracy Chang, have been sentenced to prison for their alleged role in a massive tax fraud scheme at Didsee Corporation. Hsu, 36, was handed a 33-month sentence, while Chang, 65, received a 12-month-and-a-day term. The sentences were announced by U.S. Attorney Brian J. Stretch and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
The duo’s fraudulent activities were uncovered during a one-week trial in which a jury found them guilty of conspiring to file fraudulent corporate income tax returns, filing false tax returns, and aiding the preparation of false tax returns. According to court documents, Hsu owned Didsee Corporation, a Nevada-based advertisement marketing firm, while Chang served as the company’s bookkeeper and held multiple executive positions.
“Today’s sentences are a stark reminder to all business owners that evading taxes is no joke,” U.S. Attorney Stretch declared. “It’s a serious offense with real consequences.”
Acting Deputy Assistant Attorney General Goldberg echoed the sentiment, stating, “Every taxpayer has a responsibility to file accurate returns and pay their fair share. Mr. Hsu failed that duty, and now he faces the music.”
The evidence at trial revealed that Hsu and Chang conspired to cheat the Internal Revenue Service (IRS) out of approximately $500,000 by inflating business expenses and including personal expenditures on corporate tax returns. Chang signed the fraudulent returns as President of Didsee Corporation.
In addition to their prison terms, both defendants were ordered to pay restitution to the IRS in the amount of $396,306, cover costs of prosecution totaling $8,570.95, and serve three years of supervised release upon their release from prison. Hsu was also required to pay a fine of $75,000, while Chang faced a fine of $7,500.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: Official Source ↗
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