Liquor Store Owner Indicted for Structuring Cash Deposits to Avoid Income Taxes

As April 17 Filing Deadline Approaches, U.S. Attorney Warns That Tax Cheats Often Wind up in Prison

March 20, 2012

Baltimore, Maryland - A federal grand jury has indicted Kwang Sik Kim, age 56, of Clarksville, Maryland, and his company KSJB, Inc., trading as Limetree Liquors, today on charges of structuring currency deposits to avoid the financial institution reporting requirements, in an effort to evade income taxes by concealing his taxable income.

The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Special Agent in Charge Eric C. Hylton of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

“People who defraud the IRS shift the cost to honest taxpayers,” said U.S. Attorney Rod J. Rosenstein. “As April 17 approaches, taxpayers should keep in mind that people who get caught cheating on their taxes frequently wind up in federal prison.”

“Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act,” said acting IRS Special Agent in Charge Eric Hylton. “Deliberately avoiding BSA requirements is a form of money laundering that will be vigorously investigated by IRS Criminal Investigation.”

The 14-count indictment alleges that beginning as early as March 10, 2009, and continuing until at least June 30, 2011, Kim “structured” his bank deposits in order to keep the deposits less than $10,000, so as to avoid bank reporting requirements. The indictment alleges that Kim did this by dividing his deposits between several bank accounts and depositing funds on successive days During the same time the indictment alleges that Kim was also evading income taxes by underreporting his income. Specifically, in tax years 2008, 2009 and 2010, Kim stated on his tax returns that his taxable income was $45,112, $43,028 and $26,639, respectively, whereas his actual taxable income for those years, after including unreported gross receipts, was $378,028.63, $275,794.69, and $300,017, respectively.

The indictment seeks forfeiture of at least $1,198,465, including $260,800 seized from the bank accounts Kim used to structure his deposits.

Kim faces a maximum sentence of 10 years in prison for structuring. An initial appearance in U.S. District Court in Baltimore has not yet been scheduled.

An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

United States Attorney Rod J. Rosenstein praised the IRS - Criminal Investigation for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Stefan D. Cassella, who is prosecuting the case.

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