Coralville Attorney Pleads Guilty to Mail Fraud and False Claims
DAVENPORT, IA-- On July 30, 2018, Soo Hyun Jung, also known as Jay Jung, age 46, from Coralville, Iowa, pled guilty to two counts of Mail Fraud and one count of False Claims to a Government Agency, announced United States Attorney Marc Krickbaum. Each mail fraud count carries a maximum potential penalty of not more than (20) twenty years’ imprisonment, up to a $250,000 fine, a term of supervised release of not more than (3) three years, and a $100 special assessment to the Crime Victims Fund. The false claims charge carries a potential penalty of up to (5) five years’ imprisonment, up to a $250,000 fine, a term of supervised release of not more than (3) three years, and a $100 special assessment to the Crime Victims Fund. Jung also agreed to forfeit a 2014 BMW M6 Gran Coupe, and pay restitution in the amount of $618,021.51. Sentencing is scheduled for December 12, 2018.
During a time period including 2014-2016, Jung represented clients as an attorney and tax preparer. As part of his plea, Jung admitted that in 2014, he agreed to represent a client to prepare tax returns. Jung filed tax returns and requested refunds. In July 2015, Jung contacted IRS to check on the status of these returns. During this contact, Jung updated the client’s home address on file with the IRS to Jung’s business address in Coralville. As a result, in October 2015, three United States Treasury refund checks totaling $202,179 were received by Jung. Jung forged an endorsement on these checks and, in a series of transfers, caused these funds to be deposited into his personal bank account. Jung used $83,200 of these funds in November 2015 to purchase a 2014 BMW M6 Gran Coupe.
In August 2015, Jung filed additional tax returns without the consent of the client. These additional returns contained information that was not accurate and requested refunds. These returns included a 2013 return submitted to the United States Department of Treasury on August 22, 2015, that falsely claimed a refund of $15,252.
In May 2016, in relation to a different client, Jung caused an investment fund to be cashed out and a $200,000 check mailed to Jung in Coralville, Iowa. Jung later caused these funds to be deposited into his personal bank account.
This case was being prosecuted by the United States Attorney’s Office for the Southern District of Iowa, and the Internal Revenue Service-Criminal Investigation Division.