United States Attorney
Northern District of Texas

1100 Commerce St., 3rd Fl.
Dallas, Texas 75242-1699

Telephone (214) 659-8600
Fax (214) 767-0978

DALLAS AREA DENTAL LAB OWNERS ARRESTED ON
FEDERAL TAX CHARGES

Defendants Own Amtech Dental Lab Corporation

DALLAS — David S. Park and Dae Hee Kwon have been arrested on charges outlined in a federal indictment returned last week by a federal grand jury in Dallas, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. That indictment charges each of the defendants with eight counts of filing or aiding and abetting the filing of false tax returns. The defendants made their initial appearance in federal court where a U.S. Magistrate Judge released each of the defendants on bond. Park lists his residence as Flower Mound, Texas, and Kwon lists his residence as Farmers Branch, Texas, on the Orders Setting Conditions of Release.

According to the indictment, David S. Park and Dae Hee Kwon each owned 50% of Amtech Dental Lab Corporation, which provided lab and technical services for dentists. Since Amtech was a subchapter-S type corporation, with income earned “flowing through” to the shareholders, Park and Kwon were required to report 50% of Amtech’s income on their personal income tax returns. From 2001 through 2004, some of the payments (checks) Amtech received for services were not deposited into Amtech’s operating bank account, but were instead cashed by the defendants at cash checking facilities. The defendants then split the cash received and used it for personal, and other, expenses. This income, approximately $331,372.00, was not reported on Amtech’s corporate income tax return for any of the tax years ending 2001 - 2004.

The indictment states that each of the defendants was responsible for reporting 50% of Amtech’s income on their individual U.S. income tax returns, however, neither defendant reported any portion of this income.

An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each defendant faces a maximum statutory sentence of 24 years in prison and a $2 million fine.

U.S. Attorney Roper praised the investigative efforts of the IRS - Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Phillip C. Umphres.

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