April 10, 2003 - United States Attorney Patrick L. Meehan, and Jerome D. Lisuzzo, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, today announced the unsealing of an indictment* against SAM KONG, a/k/a "Sam Yee Kong," a/k/a "Siu Yee Kong."

The Indictment charges SAM KONG, a/k/a "Sam Yee Kong," a/k/a "Siu Yee Kong," of Philadelphia, PA, with two counts of making false statements on the corporate tax returns of Sam Kong Fashions, Inc. (for calendar years 1996 and 1997), in violation of Title 26, United States Code, Section 7206(1). According to the indictment, SAM KONG was the president and sole shareholder of Sam Kong Fashions, Inc., a sewing assembly business that was located in Philadelphia, PA.

The indictment alleges that false statements were made with respect to the gross receipts/sales of the business as well as the salaries, wages and compensation of officers. Count One alleges that KONG's 1996 corporate tax return reported gross receipts/sales in the amount of $286,180 and salaries, wagers, and compensation of officers in the total amount of $177,280, when in fact Sam Kong Fashions, Inc. had gross receipts/sales and salaries, wages and compensation of officers in addition to that stated in the income tax return.

Count Two alleges that KONG's 1997 corporate tax return reported gross receipts/sales in the amount of $306,149 and salaries, wages, and compensation of officers in the amount of $185,930, when in fact Sam Kong Fashions, Inc. had gross receipts/sales and salaries, wages and compensation of officers in addition to that stated in the income tax return.

If convicted, the defendant faces a maximum sentence of three years imprisonment and a fine of $250,000 on each count.

DEFENDANT	ADDRESS	AGE [Date of Birth]
SAM KONG, a/k/a "Sam Yee Kong," a/k/a "Siu Yee Kong"	3983 Rowena Drive Philadelphia, PA 19114	43 years old 6/21/59

The case was investigated by the IRS, Criminal Investigation Division, and has been assigned to Assistant United States Attorney Paul Mansfield of the Organized Crime Division.