SANTA ANA, California – A former Buena Park resident who failed to report over $1.3 million in gross receipts and sales on his corporate income tax returns over a two year period pleaded guilty this morning to a federal tax fraud charge.
Suk Chang Song, 49, owner and operator of Toothware, Inc. in Garden Grove, California–a laboratory service which prepared items such as dental prosthetics and crowns for dentists–pleaded guilty this morning before United States District Judge Cormac J. Carney.
According to a plea agreement filed in this case, during 2012 and 2013 Song intentionally failed to inform the outside accountant who had been hired to prepare his tax returns of all of the payments that Toothware, Inc. had received from its clients. Song further intentionally concealed from his accountant that he frequently cashed client checks rather than deposit them into Toothware, Inc.’s bank accounts.
As a result of Song’s failure to inform his accountant of all of Toothware Inc.’s gross receipts, Toothware failed to report $497,660 in gross receipts in 2012 and $811,939 in gross receipts in 2013.
As a result of Song’s conduct, the government sustained losses of $445,255.
Song pleaded guilty to one count of subscribing to a false income tax return for 2013.
Song is scheduled to be sentenced by Judge Carney on January 28, 2019. The statutory maximum sentence he can receive is three years in federal prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is higher. In addition, Song has agreed to pay restitution of $445,255 to the IRS.
This case is being prosecuted by Assistant United States Attorney Paul H. Rochmes of the Tax Division.
