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Saratoga Man Sentenced to 16 Months for Tax Evasion
SAN JOSE – A local businessman has been sentenced to 16 months in prison for failing to report capital gains from the sale of his company, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez.
Jonathan Jianguo Jiang, 48, of Saratoga, Calif., was the sole shareholder and director of SecureM, a company he incorporated in the Cayman Islands in 2004. In 2004, Jiang sold SecureM to a UK company for at least $8,600,000, resulting in capital gains of at least $2.9 million between 2004 and 2006. However, Jiang failed to report these gains on his federal income tax returns for 2004, 2005, and 2006.
As a result of Jiang’s willful omissions, he owed the government $467,336 in additional tax. The 16-month sentence was handed down by The Honorable Lucy H. Koh, U.S. District Court Judge, who also ordered Jiang to serve a three-year period of supervised release and pay $467,336 in restitution.
Jiang was charged with one count of income tax evasion for the 2004 tax year and pleaded guilty on March 3, 2013. He is scheduled to begin serving his sentence on March 14, 2014. Jiang has also paid his civil tax liability, which includes penalties and interest, of over $3,000,000.
The case was prosecuted by Assistant United States Attorney Cynthia Stier, with the assistance of an investigation by the Internal Revenue Service, Criminal Investigation. This sentence serves as a reminder of the importance of accurately reporting income and paying taxes on time.
It is worth noting that this case is a result of a thorough investigation by the Internal Revenue Service, Criminal Investigation, and highlights the agency’s commitment to pursuing tax evasion cases.
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Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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