Los Angeles, California – LAWFUEL – This afternoon, Jennifer Ning, of San Gabriel, President and co-owner of Full Shine Enterprise, Inc., was sentenced to 24 months in prison and 3 years probation for obstruction and loan fraud. Ning previously pleaded guilty to conspiracy charges in which she and her husband Steven Shia obstructed and impaired the Internal Revenue Service in it’s collection of taxes owed and made false statements to lenders in connection to loans for their company. Shia was previously sentenced on May 16, 2008 to serve 27 months in prison for obstructing and impairing the IRS in it’s collections of taxes and owed and making false statements to lenders.
According to the information, Ning and Shia were each 50% owners of Full Shine. Full Shine, a company that bought and sold waste paper and other paper goods for export, is located is Los Angeles County.
According to the plea agreements, Ning admitted that she and Shia initially obtained a $12 million line of credit for Full Shine through State Street Bank International. Shortly after obtaining the line of credit, Ning and Shia began submitting loan requests to State Street Bank International that were based upon inaccurate and false financial information they submitted to the lender. Ning and Shia would prepare, or have others prepare for them, loan requests that contained altered information and false documents, submitting the loan requests to State Street Bank International for funding. Ning and Shia both admitted that they did this so that State Street Bank International would loan full Shine Enterprise, Inc., more money than they would have normally loaned the company in the absence of the fraud.
Additionally, Ning’s and Shia’s plea agreements detail that, as of January 2001, they jointly owed over $57,000 to the Internal Revenue Service for the 2000 tax year. Ning and Shia admitted that they agreed with each other to defraud the United States by impeding and obstructing the IRS in the collection of the taxes owed. To do this, Ning and Shia opened a bank account in the name of a company called Lucky Resource Company, Inc. and Shia deposited money into this account that both knew should be reported to the IRS. Further, neither Ning nor Shia used the money to pay the debt they owed to the IRS. Ning and Shia further prevented the IRS from learning about the income Shia provided to Ning through the Lucky Resource company bank account by Ning’s not filing tax returns for the years 2003 and 2004.
In a related case, Meei Liu, also know as May Liu, of Hacienda Heights, pleaded guilty in January 2007 to making a false statement to IRS and FBI agents investigating Full Shine’s false loan requests submitted to State Street Bank International. When asked, Liu, an employee at Full Shine, denied that she had personally falsified loan requests and supporting documents that Full Shine submitted to State Street Bank International when in fact she had. United States District Judge Margaret M. Morrow sentenced Liu to serve 1 year of probation and ordered her to pay a fine of $2,500 for her actions.
Judge Morrow ordered Ning to report to the Bureau of Prisons on October 15, 2008.
The cases against Ning, Shia, and Liu were investigated by agents with IRS – Criminal Investigation and the Federal Bureau of Investigation.