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Date: 11-03-2022
Case Style:
United States of America v. Tiangang Zhuang
Case Number: 2:22-cr-00437
Judge: Berle M. Schiller
Court: United States District Court for the Eastern District of Pennsylvania (Philadelphia County)
Plaintiff's Attorney: United States Attorney’s Office
Defendant's Attorney:
Tiangang Zhuang, 49, formerly of Philadelphia, controlled and operated Pilestone Inc. and Golden Mermaid, Inc., both of which were involved in the development and sale of colorblind glasses, electronics, and cosmetics. From approximately 2017 to 2019, Zhuang supplied his accountants with false financial records that intentionally understated the gross receipts earned by Pilestone and Golden Mermaid. As a result, the accountants prepared corporate tax returns for both companies that underreported their income for each of these years. Because the business income earned by the two companies flowed through to Zhuang’s personal tax returns, by providing false information to the accountants he minimized the income and tax liability reported on his personal tax returns. For example, on his 2018 individual return Zhuang reported earning approximately $163,769 in taxable income, even though he knew he actually received more than $660,000 that year. In total, Zhuang caused a tax loss to the IRS of approximately $219,663.
Zhuang is scheduled to be sentenced on March 14, 2023. He faces a maximum penalty of three years in prison for filing a false tax return. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge 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 and U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Jorge Almonte and Trial Attorney Catriona M. Coppler of the Tax Division are prosecuting the case.
26:7206(1) - FILING A FALSE TAX RETURN
Any person who-
(1) Declaration under penalties of perjury
Willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter; or
(2) Aid or assistance
Willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under, the internal revenue laws, of a return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document; or
(3) Fraudulent bonds, permits, and entries
Simulates or falsely or fraudulently executes or signs any bond, permit, entry, or other document required by the provisions of the internal revenue laws, or by any regulation made in pursuance thereof, or procures the same to be falsely or fraudulently executed, or advises, aids in, or connives at such execution thereof; or
(4) Removal or concealment with intent to defraud
Removes, deposits, or conceals, or is concerned in removing, depositing, or concealing, any goods or commodities for or in respect whereof any tax is or shall be imposed, or any property upon which levy is authorized by section 6331, with intent to evade or defeat the assessment or collection of any tax imposed by this title; or
(5) Compromises and closing agreements
In connection with any compromise under section 7122, or offer of such compromise, or in connection with any closing agreement under section 7121, or offer to enter into any such agreement, willfully-
(A) Concealment of property
Conceals from any officer or employee of the United States any property belonging to the estate of a taxpayer or other person liable in respect of the tax, or
(B) Withholding, falsifying, and destroying records
Receives, withholds, destroys, mutilates, or falsifies any book, document, or record, or makes any false statement, relating to the estate or financial condition of the taxpayer or other person liable in respect of the tax;
shall be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than 3 years, or both, together with the costs of prosecution.
Outcome: 12/08/2022 10 Minute Entry for proceedings held before HONORABLE BERLE M. SCHILLER in Courtroom 13B:IA/Plea Hearing as to TIANGANG ZHUANG held on 12/8/22. Defendant sworn. Plea entered as to TIANGANG ZHUANG (1): Guilty to Count 1. Court accepts plea. PSR ordered. Bail set for at $100,000 O/R. Sentencing scheduled for March 14, 2023 at 9:30 a.m. in Courtroom 13B.Court Reporter ESR.(mac) (Entered: 12/08/2022)
Plaintiff's Experts:
Defendant's Experts:
Comments: