Saratoga Man Sentenced To 16 Months For Tax Evasion
SAN JOSE – Jonathan Jianguo Jiang was sentenced yesterday to 16 months imprisonment for failing to report capital gains for the sale of his company, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez.
Jiang, 48, of Saratoga, Calif., incorporated SecureM in the Cayman Islands on January 28, 2004. He was the director, president, and sole shareholder of SecureM. On April 17, 2004, SecureM was sold to a UK company for at least $8,600,000. Jiang willfully omitted the capital gains from his 2004, 2005 and 2006 federal income tax returns, notwithstanding the fact that he received capital gains of at least $2.9 million between 2004 and 2006 from the sale of SecureM. Jiang’s willful omissions resulted in $467,336 of additional tax due.
Jiang, was charged on March 6, 2012, with one count of income tax evasion for the 2004 tax year. He pleaded guilty on March 3, 2013.
The sentence was handed down by The Honorable Lucy H. Koh, U.S. District Court Judge. Jiang was also sentenced to a three-year period of supervised release and ordered to pay $467,336 in restitution. Jiang will begin serving the sentence on March 14, 2014.
Jiang also paid his civil tax liability, which includes penalties and interest, of over $3,000,000.
Cynthia Stier is the Assistant United States Attorney who is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.