April 13, 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 a two-count indictment* returned by a federal grand jury on April 7, 2004 against LU DE LIAO. The indictment charges LU DE LIAO with willfully making and subscribing false corporate income tax returns on behalf of D & B Fashions, Inc., for the calendar years 1997 and 1998, in violation of Title 26, United States Code, Section 7206(1).

The indictment also alleges that D & B Fashions, Inc., was a sewing assembly business located in Philadelphia, Pennsylvania, and that LU DE LIAO was the president and a 100% shareholder of that business.

The indictment further alleges that false statements were made with respect to the gross receipts/sales of D & B Fashions, Inc., for the calendar years 1997 (Count One) and 1998 (Count Two). While the returns reflected gross receipts/sales of $646,372 for 1997 and $654,396 for 1998, the indictment alleges that the actual gross receipts/sales were more than the amounts stated on the corporate tax returns.

At a bail hearing this afternoon, the government argued that LU DE LIAO underreported the gross receipts/sales for D & B Fashions, Inc., by over $746,000 in 1997, and over $739,000 in 1998. The government further argued that over the three-year period from 1996 to 1998, the defendant underreported his gross receipts/sales by over $1,740,000.

DEFENDANT	ADDRESS	AGE [Date of Birth]
LU DE LIAO	13041 Depue Avenue Philadelphia, PA 19116	41 years old 6/2/62

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