Sook Young Jung, Tax Fraud, Hawaii 2024

A former Honolulu resident has been found guilty of a serious crime, demonstrating the importance of honest tax practices.

Sook Young Jung, a former resident of Honolulu, pleaded guilty yesterday to conspiring to defraud the IRS by fraudulently obtaining a tax refund and then thwarting efforts to recoup it.

According to court documents and statements made in court, Jung conspired with others to file a false 2015 individual income tax return in her name. As part of the conspiracy, Jung’s co-conspirators created a fake tax form purportedly issued by a mortgage lender to Jung, which Jung attached to her return.

The form falsely reported that Jung withheld over $1.7 million in taxes. As a result of this fraudulent submission, the IRS paid Jung a refund of $1,147,036.

After filing the false tax return and submitting the fake tax form, Jung took steps to try and ensure that the IRS could not recover the fraudulently obtained refund. For example, she deposited the refund check into a newly opened bank account and immediately withdrew most of the funds in cashier’s checks.

She also paid, through nominees, one of her co-conspirators $500,000 for the co-conspirator’s assistance in obtaining the fraudulent refund.

Jung is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison.

She also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The case was investigated by the IRS Criminal Investigation, the Treasury Inspector General for Tax Administration and the FBI.

Trial Attorneys Sarah Kiewlicz and Sara Henderson of the Tax Division and Assistant U.S. Attorney Gregg Paris Yates for the District of Hawaii are prosecuting the case.

MANDATORY FACTS

1. Defendant/respondent REAL full name or legal entity name: Sook Young Jung

2. Exact criminal charges: Conspiring to defraud the IRS by fraudulently obtaining a tax refund and then thwarting efforts to recoup it

3. City and state: Honolulu, Hawaii

4. Exact date: Yesterday

5. Sentence or outcome: Faces a maximum penalty of five years in prison

6. Dollar amounts: $1.7 million, $1,147,036, $500,000

Source: https://www.justice.gov/archives/opa/pr/former-honolulu-resident-pleads-guilty-tax-fraud