WASHINGTON – David Chui, a resident of Queens, N.Y., pleaded guilty to failing to pay employment taxes in connection with his former ownership of a garment assembly business, the Justice Department and Internal Revenue Service (IRS) announced today.
According to the plea agreement and criminal information, from at least 2005 through 2008, Chui owned and operated New Shanghai Fashions, a garment assembler in Manhattan. Between the fourth quarter of 2005 and continuing through at least the third quarter of 2008, Chui did not collect, truthfully account for, and pay over employment taxes of nearly $220,000 from his employees’ wages. In addition, the plea agreement requires Chui to pay restitution to the IRS in the amount of $439,918.61, which encompasses both the employment taxes that he failed to withhold from his employees and his obligation, as an employer, to pay over a matching portion of those employment taxes.
Chui faces a maximum sentence of five years in prison, a maximum of three years supervised release and a fine of up to $250,000.
This case was investigated by IRS-Criminal Investigation and is being prosecuted by the U.S. Attorney’s Office for the Southern District of New York Complex Frauds Unit. Special Assistant U.S. Attorney and Department of Justice Tax Division Trial Attorney Tino M. Lisella is in charge of the prosecution.
Sentencing is tentatively scheduled for Nov. 18, 2011.