Peoria Business Owner Sentenced to 24 Months for Tax Evasion
PHOENIX, Ariz. – In a shocking turn of events, Sung Hwan Lee, 64, of Peoria, Arizona, has been sentenced to 24 months in prison, followed by three years of supervised release. The harsh sentence was handed down by United States District Judge David G. Campbell on October 26, 2022.
Lee, the owner and operator of BBB Fashion, a chain of clothing stores in and around Phoenix and Tucson, Arizona, had previously pleaded guilty to Tax Evasion on March 23, 2022. The scheme, which lasted from 2012 to 2016, involved Lee directing his employees to give him the cash received from sales and then preparing false sets of records omitting the cash receipts.
Through this cash-skimming scheme, Lee underreported his income for tax years 2012-2016 by $9,355,894, resulting in a tax loss of $3,696,786 to the federal government. The staggering figures highlight the severity of Lee’s actions and the financial burden he placed on the government.
BBB Fashion’s bookkeeper, Young Bok Lee, who was also involved in the scheme, has previously pleaded guilty to Conspiracy to Defraud the United States. Young Bok Lee is scheduled to be sentenced on December 1, 2022, by United States District Judge Susan R. Bolton.
The investigation into Lee’s activities was conducted by the IRS-Criminal Investigation. Assistant U.S. Attorney Caitlin Noel, District of Arizona, Phoenix, handled the prosecution.
Lee’s sentencing marks a significant victory for the government in its efforts to combat tax evasion and other financial crimes. The case serves as a reminder of the importance of honesty and transparency in business dealings.
The U.S. Attorney’s Office, District of Arizona, has released a statement regarding the case. For more information, visit http://www.justice.gov/usao/az/.
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
**Case Number:** CR-22-00212-PHX-DGC
**Release Number:** 2022-207_Lee
Key Facts
- State: Arizona
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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