November 20, 2001

OWNER OF LOS ANGELES CLOTHING ACCESSORY
BUSINESS PLEADS GUILTY TO FEDERAL TAX CHARGES

 Admitting that nearly one million dollars of gross receipts were omitted from a corporate income tax return, the owner of a downtown garment-accessory company pleaded guilty today to a federal criminal tax charge, United States Attorney John S. Gordon announced.
 Shu Mei (Angela) Chen, 45, pleaded guilty to a felony count of subscribing to a false corporate income tax return for Carnation Creations, Inc. The false tax return was for the tax year ending October 31, 1995.
 Carnation Creations, a wholesale garment-accessory company located in the garment district of downtown Los Angeles, was owned by Chen. Carnation Creations’ successor was E&T Fashion, also located in downtown Los Angeles.
 The guilty plea was the result of an investigation that disclosed that Chen failed to report as income $989,176 of gross receipts for Carnation Creations on the tax return dealing with the fiscal year that ended in 1995.
 Chen intentionally caused the false corporate income tax return to be filed with the Internal Revenue Service with the knowledge that the tax return did not include all the gross receipts of the corporation.
 As a result of the guilty plea, Chen faces a maximum sentence of up to three years in federal prison and a fine of up to $250,000.
 Chen is scheduled to be sentenced on February 11, 2002 by United States District Judge Gary A. Feess.
 This case is the result of an investigation conducted by Internal Revenue Service Criminal Investigation, Los Angeles Field Office.

 Release No. 01-169

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