Related Federal Cases
- David Menzies, Tax Refund Inflation Scheme, New York 2024 · Connecticut
- Jorge O. Laurido, Tax Return Fraud, New York 2024 · Texas
- Takisha Rainey, Tax Refund Check Forgery, New York 2023 · New York
- Edward Hansen, Employment Tax Fraud, New York 2023 · New York
- Maureen Holleran, Filing False Tax Return, New York 2023 · New York
Spa Owner Pleads Guilty to Payroll Tax Crimes
In a shocking move, Sung Soo Chon, 63, a.k.a. Steve Chon, the CEO, president, and majority owner of Spa Castle Queens in College Point, New York, and Spa Castle Texas, in Carrolton, Texas, pleaded guilty today to willfully failing to collect and pay over employment taxes to the IRS on behalf of the spa companies he owned and managed.
According to court documents and statements made in court, Chon was in charge of the daily operations at the two spas and related businesses. He directed subordinates to pay cash wages to some employees, many of whom were not legally permitted to work in the United States.
From the first quarter of 2014 through the first quarter of 2017, Chon did not withhold all of the legally required federal payroll taxes from the wages of some of the spa employees and filed false employment tax returns with the IRS. During this period, Chon caused the businesses to conceal more than $1.3 million in cash wages. In total, the spa companies did not pay $199,238 in payroll taxes due to the IRS.
Chon is scheduled to be sentenced on Dec. 6. He faces a maximum penalty of five years prison, as well as 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.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Breon Peace for the Eastern District of New York made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Jorge Almonte and Trial Attorney Ann M. Cherry of the Tax Division are prosecuting the case.
Mandatory Facts:
- Defendant: Sung Soo Chon
- Criminal Charges: Willfully failing to collect and pay over employment taxes to the IRS
- City and State: Brookville, New York
- Exact Date: Not specified in the press release
- Sentence or Outcome: Scheduled to be sentenced on Dec. 6, faces up to 5 years in prison
- Dollar Amounts: $1.3 million in cash wages concealed, $199,238 in payroll taxes due to the IRS
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
