Former Honolulu Resident Pleads Guilty to Tax Fraud

Article: A former resident of Honolulu has pleaded guilty to conspiring to defraud the IRS by fraudulently obtaining a tax refund and then obstructing efforts to recover it. Sook Young Jung, along with her co-conspirators, filed a false 2015 individual income tax return using a fake tax form that claimed she had withheld over $1.7 million in taxes. The IRS, unaware of the fraud, issued Jung a refund of $1,147,036.

In an attempt to prevent the IRS from detecting the fraudulent refund, Jung deposited the money into a newly opened bank account and quickly withdrew most of the funds in cashier’s checks. She also paid one of her co-conspirators $500,000 for their assistance in orchestrating the scheme.

Jung now faces a maximum penalty of five years in prison, along with a period of supervised release, restitution, and monetary penalties. The sentencing will be determined by a federal district court judge, taking into account the U.S. Sentencing Guidelines and other statutory factors.

The investigation into this case is being conducted by the IRS Criminal Investigation unit, the Treasury Inspector General for Tax Administration, and the FBI. The prosecution is being handled by Trial Attorneys Sarah Kiewlicz and Sara Henderson of the Justice Department’s Tax Division, along with Assistant U.S. Attorney Gregg Paris Yates for the District of Hawaii.

This case serves as a reminder of the importance of tax compliance and the severe consequences of attempting to defraud the IRS. Tax fraud not only harms the government’s ability to fund essential services but also undermines public trust in the integrity of the tax system.

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