March 11, 2004 - 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* returned by a federal grand jury on March 10, 2004 against WEN J. LIANG and LI KAI LIANG. The indictment charges WEN J. LIANG with willfully making and subscribing a false corporate income tax return on behalf of L&J Clothing, Inc. ("L&J Clothing"), for the calendar year 1997, in violation of Title 26, United States Code, Section 7206(1) (Count One), and for aiding and assisting the preparation of false corporate income tax returns on behalf of Jimmy Fashion, Inc. ("Jimmy Fashion") for the calendar years 1998 and 1999, in violation of Title 26, United States Code, Section 7206(2) (Counts Four and Six). LI KAI LIANG is also charged with willfully making and subscribing false corporate income tax returns on behalf of Jimmy Fashion for the calendar years 1998 and 1999 (Counts Three and Five), and for aiding and assisting the preparation of a false corporate income tax return on behalf of L&J Clothing for the calendar year 1997 (Count Two).

The indictment also alleges that L&J Clothing and Jimmy Fashion were apparel assembly businesses that were located in Philadelphia, Pennsylvania, and that Jimmy Fashion was the successor corporation to L&J Clothing. It further alleges that WEN J. LIANG was President and Chief Executive Officer of L&J Clothing, and that LI KAI LIANG was President and Chief Executive Officer of Jimmy Fashion.

The indictment further alleges that false statements were made with respect to the gross receipts/sales of L&J Clothing for the calendar year 1997, and for Jimmy Fashion for the calendar years 1998 and 1999. While the returns reflected gross receipts/sales of $403,462 for 1997, $197,246 for 1998, and $169,750 for 1999, the indictment alleges that the actual gross receipts/sales were more than the amounts stated on the corporate tax returns.

DEFENDANT	ADDRESS	AGE [Date of Birth]
WEN J. LIANG	6333 Large Street Philadelphia, PA 19149	43 years old 3/27/60
LI KAI LIANG	6333 Large Street Philadelphia, PA 19149	38 years old 12/25/65

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.