November 26, 2001

OFFICE OF THE UNITED STATES ATTORNEY
SOUTHERN DISTRICT OF CALIFORNIA
San Diego, California

United States Attorney
Patrick K. O'Toole

For Immediate Release

NEWS RELEASE SUMMARY

United States Attorney Patrick K. O'Toole announced that John Chanh Truong, a former owner of Balboa Consolidated Health Inc. in San Diego, was sentenced today for income tax evasion. United States District Judge James M. Lorenz sentenced John Truong to four months imprisonment, followed by four months in-home detention and three years supervised release. Troung previously plead guilty on June 25, 2001, to an indictment charging him with two counts of tax evasion for the tax years 1994 and 1995.

In pleading guilty, Truong admitted that, as owner and manger of Balboa Consolidated Health, Inc., a medical clinic located in San Diego, California that operated as Balboa Health Clinic, he cashed checks made payable to Balboa Health Clinic and converted the money to his personal use. Truong also provided false and incomplete information to the Certified Public Accountant (CPA) who prepared the corporate tax return for the clinic, thereby resulting in a false Form W-2 being issued to Truong. The Forms W-2 for 1994 and 1995, both failed to include the checks Truong had cashed and converted to his personal use. Truong then provided the false Forms W-2 to his individual income tax return preparer, resulting in individual income tax returns that substantially under reported his taxable income and taxes due. During 1994 - 1995 Truong also took the same steps to conceal income he received from eight other clinics he operated at various locations in California, Arizona, and Oregon.

DEFENDANT

John Chanh Truong

Business:
Balboa Health Clinic
4422 Convoy Street
San Diego, California

Residence:
Fountain Valley, California

SUMMARY OF CHARGES

Title 26, United States Code, Section 7201: Tax Evasion
Maximum Sentence of 5 years in prison and fine not to exceed $250,000 per count.

AGENCY

Internal Revenue Service, Criminal Investigation
San Diego, California