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Justice News

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

FOR IMMEDIATE RELEASE
Tuesday, July 11, 2017

Lockland Company Pleads Guilty to Failing to Report Large Cash Transactions and Trucking Safety Violations

CINCINNATI – Enson Trading LLC, which does business as Eternal Food Service, pleaded guilty in U.S. District Court to failing to file required IRS forms for cash transactions exceeding $10,000, and to violating Federal Motor Carrier Safety regulations.

 

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Thomas J. Ullom, Special Agent in Charge, U.S. Department of Transportation Office of Inspector General, and Angela Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Field Office, announced the pleas entered today before U.S. District Judge Timothy S. Black.

 

According to the Statement of Facts in this case, Enson is a Lockland-based wholesale food storage facility and distributor to primarily Asian restaurants in Ohio and nine other states. Many of the company’s customers pay in cash. Between October 2010 and June 2012, the company failed to file a federal Form 8300 for 41 cash transactions totaling $564,202.23. Federal laws and regulations require every person engaged in a nonfinancial trade or business that receives cash in excess of $10,000 to file the form within 15 days of receipt of the cash.

 

The company also pleaded guilty to conspiracy to continue operation after imposition of an out-of-service order from the Federal Motor Carrier Safety Administration (FMCSA). In June 2010, FMCSA conducted a compliance review of the trucks the company used to distribute its products in Ohio and out of state and issued the company an unsatisfactory safety rating based upon critical violations of several regulations. FMCSA gave the company 60 days to address the violations or they would receive an out-of-service order. Eight days before the company’s trucking operations were to be put out of service, the company registered and incorporated under a different name. The company did that five more times between 2010 and 2014, using the names Heng Hua, National Trucking, Eternal Trading Corporation, Aspiron and FC Logistics.

 

Terms of the plea agreement call for the company to serve three years of probation, pay a $525,000 fine, and forfeit $215,012.55. Enson Trading, LLC manager Qing Xia Zheng entered the plea on behalf of the company.

 

U.S. Attorney Glassman commended the investigation of this case by the IRS, the U.S. Department of Transportation Office of Inspector General and the FBI, and District Criminal Chief Kenneth L. Parker, who is representing the United States in this case.

Topic(s): 
Financial Fraud
Component(s): 
Updated July 12, 2017