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Saratoga Resident Convicted of Tax Fraud
A federal jury returned a verdict yesterday against Jyh-Chau ‘Henry’ Horng, finding him guilty of two counts of filing false tax returns and one count of lying to the IRS during a 2010 audit.
Horng, 51, owned and operated an international trading business from his Saratoga home. The evidence at trial showed that Horng filed joint tax returns for 2006 and 2007 that underreported the couple’s income. In the 2006 tax return, Horng reported the couple’s income was only $232,116. In the 2007 tax return, Horng reported that the couple suffered a loss in the amount of $212,217.
During the same 2006-2007 period, the defendants purchased millions of dollars of real estate, reported on numerous loan applications annual income of over $1 million, invested over $5 million into a Milpitas shopping center, and spent over $350,000 using credit cards.
Horng’s wife, Meili ‘Ally’ Lin, was also tried with respect to two counts of tax fraud; the jury failed to reach a verdict with respect to one count and acquitted Lin of the second count.
Horng is free on bail, pending sentencing. Judge Freeman has not yet scheduled his sentencing hearing. Horng faces a statutory maximum sentence of three years in prison for each false tax return and up to an additional five years in prison for lying to the IRS auditor.
Assistant United States Attorney Michael G. Pitman and Trial Attorney Christopher Magnani are prosecuting the case with the assistance of Jonathan Deville. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
Horng’s conviction is a significant blow to those who seek to evade their tax responsibilities. ‘This verdict demonstrates the commitment of the IRS and our office to holding individuals accountable for their actions and ensuring that those who cheat the system are brought to justice,’ said Acting United States Attorney Alex G. Tse.
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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