Nan Ma, Kickback Scheme, Utah 2023

Related Federal Cases

James Hansen, Ponzi Scheme, Utah 2022 · Utah
Emilee Peterson Buckley, Investment Fraud Scheme, Salt Lake City UT… · Hawaii
Cortney S. Valentine, Bankruptcy System Defraud, Utah 2024 · Idaho
Lynada Laticia Mahone, Kmart Storefront Scheme, MT 2024 · Oklahoma
Nemeckay, $1.7M Wire Fraud, Utah 2024 · California

Table of Contents

Washington Man Sentenced to 33 Months in Prison for Kickback Scheme

A Washington, Utah man has been sentenced to 33 months in federal prison for his role in a kickback scheme that defrauded a high-end audio business in Hurricane, Utah. Nan Ma, 39, was also ordered to pay $2,563,337 in restitution to Sound Vision Technology (SVT) and $777,879 in restitution to the IRS for outstanding federal tax obligations.

Ma, who is a Chinese citizen with legal permanent resident status in the U.S., used his position as the officer in charge of production at SVT to solicit and obtain kickbacks from Chinese companies. In exchange for the kickbacks, he awarded lucrative contracts to these companies to manufacture and sell products to his employer. Over the course of his scheme, Ma caused SVT to overpay for its products by approximately $2,563,337.09.

Ma concealed the source of the funds he was getting through the alleged kickbacks by making false representations to his employer about the origin of his new-found wealth. He used the money to purchase a series of larger and larger homes, expensive vehicles, and townhomes in the St. George area. He also had significant amounts of cash tucked away in various bank accounts. These assets have been forfeited and it is anticipated that the proceeds from the forfeiture will be applied to pay restitution to SVT.

In the plea agreement, Ma agreed to forfeit any ill-gotten gains, and admitted that in September of 2019, he travelled to China and obtained Chinese Yuen currency worth $47,934 in U.S. Dollars and that he brought this money from China into the United States without filing a report with the United States Treasury. In so doing, Ma violated a federal law requiring that anyone who brings more than $10,000 of foreign currency into the U.S. to file a report with the U.S. Treasury.

Assistant U.S. Attorney Tyler Murray from the U.S. Attorney’s Office for the District of Utah prosecuted the case. Special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS-Criminal Investigation investigated the case.

Nan Ma, 39, of Washington, Utah, was sentenced by a U.S. District Court Judge in St. George, Utah, to serve 33 months in federal prison. He must also pay $2,563,337 in restitution to Sound Vision Technology and $777,879 in restitution to the IRS. These mandatory facts highlight the severity of Ma’s crimes and the significant financial losses he caused. The case serves as a reminder of the importance of transparency and accountability in business dealings.

The case highlights the need for vigilance in detecting and preventing kickback schemes. Sound Vision Technology was a victim of Ma’s scheme, and the company has suffered significant financial losses as a result. The restitution ordered in this case will help to compensate the company for its losses.