Route 18 Carpet Owner Pleads Guilty to Filing False Tax Returns

A co-owner of pleaded guilty to filing fraudulent personal income tax returns, according to a press release from the Internal Revenue Service,

Siew Leng Cheong, 52, a resident of North Brunswick, entered her guilty plea Thursday in federal court before U.S. District Court Judge Claire C. Cecchi.

Cheong pleaded guilty to two-count Information that charges her with subscribing to false personal income tax returns for the 2006 and 2007 calendar years. Sentencing is scheduled for Sept. 6.

“Prosecuting individuals like Ms. Cheong who intentionally file false tax returns is a vital element in maintaining public confidence in our tax system,” stated JoAnn S. Zuniga, Acting Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office. “Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who do not.”

According to court documents, Cheong was a co-owner of Route 18 Carpet Corporation and admitted that in 2006 and 2007, she diverted cash and checks that represented business proceeds from Route 18 Carpet Corporation into her personal checking account at China Trust Bank. On her joint federal income tax returns for 2006, Cheong admitted that she failed to include over $100,000 and $300,000 respectively relating to the diverted business proceeds.

As part of her plea agreement, Cheong must repay back taxes, penalties and interest to the Internal Revenue Service.

The charge of subscribing to a fraudulent tax return carries a statutory maximum prison sentence of three years and a statutory maximum fine equal to the greatest of: (1) $250,000; (2) twice the gross amount of any pecuniary gain derived from the offense; or (3) twice the gross amount of any pecuniary loss sustained by any victims of the offense.

The investigation was conducted by IRS-Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge JoAnn S. Zuniga and The United States Attorney’s Office, under the direction of United States Attorney Paul J. Fishman.

The government is represented by Assistant United States Attorney Bohdan Vivitsky.