Department of Justice Seal



FOR IMMEDIATE RELEASE	     			                                     


TAX


MONDAY, AUGUST 3, 1998					         


(202) 616 2765


TDD (202) 514 1888

 

DEMOCRATIC FUND RAISER CHARGED WITH VIOLATING TAX LAWS

 
 

	Washington, D.C. ­ The Justice Department today charged Democratic fund raiser, Gene K.H. Lum, with violating federal tax laws by falsely claiming more than $7.1 
million in tax deductions on tax returns for himself and his wife, Nora T. Lum. 


	According to count one of the criminal information, filed in U.S. District Court in
Tulsa, Oklahoma, Lum illegally claimed more than $5 million as a tax deduction on his
1994 tax return for  payment of "commissions and fees" which he did not, in fact, incur.


	Count two of the information alleges Lum aided and assisted in the preparation
of a 1994 individual income tax return for his wife, Nora T. Lum, in which she claimed a
deduction of $797,798 for a charitable contribution she did not make, and a deduction
of $1.1 million in payment of "commissions and fees" which she did not incur. 


	Each count carries a maximum fine of $250,000 and sentencing of up to three
years imprisonment.  


	On May 21, 1997, as part of a plea agreement with the Department's Public
Integrity Section, Nora T. and Gene K.H. Lum plead guilty to a felony conspiracy to
make approximately $50,000 in illegal campaign contributions to 1994 Congressional
campaigns.  Their daughter Trisha C. Lum, also plead guilty the same day to a
misdemeanor violation in a separate campaign finance incident.  Nora and Gene Lum
each were sentenced to 10 months imprisonment and fined $30,000.  Trisha Lum was
sentenced to probation, over $12,000 in fines and costs, and community service.
Today's criminal charges stem from information transferred to the Department by
Independent Counsel Daniel S. Pearson, who was investigating allegations of
wrongdoing by former Commerce Secretary Ronald H. Brown.  The tax case has been
investigated by Tax Division attorney Kenneth M. Breen with the assistance of the IRS'
Criminal Investigation Division, the Tulsa, Oklahoma, U.S. Attorney's office and the
Public Integrity Section of the Criminal Division.

 

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