Tax Evasion Scheme to defraud the IRS
In August of 2012, Tae Son Lee, 52 (AKA: Mike Lee) was the the president of Westco Roofing Inc. in Oakland, CA. “Mike Lee” was sentenced to 24-months in federal prison, followed by 3-years of supervised release, and ordered to pay $367,656 in restitution for a tax evasion scheme.
Mr. Lee pleaded guilty on April 4, 2012, to conspiracy to defraud the United States of tax revenue that was part of a 50-count indictment handed down in 2010. The plea agreement and evidence presented in court at Mr. Lee’s sentencing showed that Lee was the sole shareholder and corporate officer of Westco Roofing Company Inc. in Oakland, CA. Mr. Lee had set up a complex series of shell companies to defraud the IRS from 2003 through 2008 by “impeding the IRS in its assessment and collection of Social Security and FICA taxes.” In order to pull off his tax evasion scheme, Mr. Lee made “subcontractor” payments to “conspiracy-controlled shell companies” that didn’t really have any employees and, thus, performed no actual work. Cash was then withdrawn from the shell companies’ bank accounts and Westco employees rwere paid in cash. Westco failed to report wages; failed to withhold the FICA taxes and other withholding on those under-the-table wages and defraud the United States of tax revenue.
Are you anxious about something the IRS might frown over?
If you got involved in something by accident or on purpose that might be considered tax fraud, tax evasion, or money laundering, it might be wise to seek confidential legal counsel from a tax attorney. A taxpayers’ attempt to right a wrong will often rectify the worst of circumstances with the best possible outcome when compared to those who wait until an investigation uncovers wrongdoing. By waiting to be “found out,” you are more likely to be charged with a crime and face serious consequences. Call tax lawyer Paul Staley to schedule a no cost, confidential meeting at (619) 235-4095.