Description: Brooklyn, New York criminal defense lawyer represented Defendant charged with aiding and assisting the preparation of a false tax return.
Alice Bixuan Zhang of Queens, New York, co-owned and operated Wellife Physical Therapy and Acupuncture PLLC (“Wellife”) and Welling Physical Therapy and Acupuncture PLLC (“Welling”), both of which had locations throughout New York City. Zhang, along with Nikki B. Yu, who pleaded guilty in October 2020, established and used a series of purported management companies to conceal acupuncture business income from taxation. Zhang and Yu diverted funds from Welling and Wellife and did not report those funds to the IRS. Rather, Zhang and Yu cashed checks, drawn on Welling and Wellife accounts and made payable to the purported management companies, at a check-cashing business and then provided false and incomplete information to their tax return preparers by not disclosing the cashed amounts. This scheme to conceal income resulted in a tax loss to the IRS of over $784,000.
Sentencing is scheduled for December 14, 2023. Zhang faces a maximum penalty of three years in prison. She also faces a period of supervised release, restitution, and monetary penalties. U.S. District Judge Ann M. Donnelly will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. Mr. Goldberg thanked the U.S. Attorney’s Office for the Eastern District of New York for their assistance in the matter.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Thomas F. Koelbl and Trial Attorney Ezra Spiro of the Justice Department’s Tax Division are prosecuting the case.
Title 18, United States Code, Sections 371 and 3551 et seq. - Conspiracy to Defraud the United States
Title 26, United States Code, Section 7206(2); Tille 18, United States Code. Sections 2 and 3551 et seq. - Aiding and Assisting the Preparation of a False Tax Return
Outcome: Defendant pleaded guilty.