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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of California

FOR IMMEDIATE RELEASE
Wednesday, December 3, 2014

Local Businessman Pleads Guilty To Tax Evasion

SAN DIEGO – Ho Sung Lim, owner of three Cricket Wireless outlets in San Diego County, pleaded guilty in federal court today to a tax evasion charge, admitting that he used a number of methods to avoid paying income and employment taxes to the Internal Revenue Service.

According to his plea agreement, Lim acknowledged that he failed to report income from his business; he paid employees in cash and underreported their wages to avoid payroll taxes; and he paid personal expenses from a corporate account – all of which lowered his tax bill by more than $160,000 over four years.

Lim’s plea was accepted by U.S. Magistrate Judge Mitchell D. Dembin and is subject to final approval by U.S. District Court Judge Larry A. Burns. He was charged via information today.

“We all have to pay our fair share of taxes,” said U.S. Attorney Laura Duffy. “Anyone who deliberately shirks this obligation takes a big risk, as Mr. Lim has learned.”

Erick Martinez, IRS Criminal Investigation’s Special Agent in Charge said, “Business owners have a responsibility to pay their fair share of taxes—both income and employment—and remit those taxes to the Internal Revenue Service. The failure to do so is a very serious offense. Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t.”

According to his plea agreement, Lim admitted that on several occasions between 2009 and 2012 he skipped his duty to file Employer’s quarterly Federal Tax Return, Form 941 (“Payroll Taxes”), on behalf of his business Telecell, Inc. Lim admitted that he attempted to evade or defeat the payment of Payroll Taxes by various means, including, but not limited to paying employees from his business, Telecell, Inc., in cash, and without reporting to the IRS the full amount of income he paid to those employees.


DEFENDANTS   Case Number: 14cr3484-LAB
Ho Sung Lim Age: 47 San Diego, California
 
CHARGES

Tax Evasion – Title 26 U.S.C., Section 7201
Maximum Penalty: 5 years’ imprisonment; $100,000 fine; costs of prosecution.

 
INVESTIGATING AGENCY

Internal Revenue Service Criminal Investigation

*Indictments and complaints are not evidence that the defendant committed the crime charged.  All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.     

Updated July 23, 2015