If you were going to commit tax fraud, would you and your partner in crime exchange checks for the same exact amount to the penny? That’s among the evidence that caused Inn-Chung Chen (aka Daniel Chen) to plead guilty to tax fraud.
Mr. Chen was president of Top Line Electronics, a contract electronics manufacturer in San Jose, from 1997 until 2000. Mr. Chen, along with three alleged accomplices, moved money from his business to other bank accounts he controlled so that he could use the money for his personal needs.
Mr. Chen wrote a check for $43,965.75 to a company controlled by one of his accomplices. Amazingly enough, days later a check was written for $43,965.75 to another bank account controlled by Mr. Chen.
The scheme wasn’t for peanuts, as the total amount involved was over $2 million (resulting in a tax loss of over $900,000). Mr. Chen pleaded guilty to two counts: one each of conspiracy and filing a false tax return. He’ll likely spend some time at ClubFed. His three alleged accomplices have warrants out for their arrest.