“Prosecuting offshore tax evasion remains one of the Tax Division’s highest priorities,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
“Taxpayers Contemplating Hiding Money Abroad And The Foreign Bankers, Attorneys And Finance Professionals Who Design And Execute Strategies To Assist Their Evasion;
Should Know That The Tax Division And IRS Have The
Investigative Resources And Expertise To
Unravel Even The Most Elaborate Schemes.”
“As alleged, the individual defendants and the Swiss firm Allied Finance
conspired to defraud the IRS by assisting U.S. taxpayers in avoiding their tax
obligations,” said U.S. Attorney Audrey Strauss for the Southern District of
New York. “They allegedly did this through an elaborate scheme that involved
concealing customer assets at a Swiss private bank through nominee bank
accounts in Hong Kong and elsewhere, with funds returning to the private bank
in the name of a Singapore firm. One such U.S. customer, Wayne Chinn, pleaded
guilty to his participation in the so-called ‘Singapore Solution,’ forfeited
more than $2 million to the United States, and awaits sentencing for his
If convicted, the defendants face a maximum penalty of five (5) years in
prison, supervised release, and monetary penalties, and the corporate defendant
faces monetary penalties. An indictment is merely an allegation and all
defendants are presumed innocent until proven guilty beyond a reasonable doubt
in a court of law.
Also unsealed was the guilty plea of Wayne Franklyn Chinn, of Vietnam and San Francisco, California, one of the U.S. taxpayer-clients, who participated in the Singapore Solution scheme.
Chinn pleaded guilty to one count of tax evasion which carries a maximum
penalty of five (5) years in prison. Chinn also consented to the civil forfeiture
of 83% of the funds held in five accounts at two Singapore banks, which
resulted in the successful forfeiture and repatriation to the United States of
approximately $2.2 million. The civil forfeiture proceeding is United
States of America v. Certain Funds on Deposit in Various Accounts, 20 Civ. 3397
Chinn is scheduled to be sentenced on Nov. 19, and faces a maximum penalty
of five (5) years in prison. 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.
Voluntary Disclosure Program
is Right for You?