Saratoga man pleads guilty to one count of tax evasion

By Khalida Sarwari

A 47-year-old Saratoga man is facing five years in prison and a fine of $100,000 after he admitted neglecting to report $3 million in capital gains over a three-year period.

On March 6, Jonathan Jianguo Jiang pleaded guilty as part of a plea agreement to one count of willfully attempting to evade or defeat tax for 2004, according to the U.S. Department of Justice.

The tax evasion was uncovered by the criminal investigation unit of the Internal Revenue Service. According to the DOJ, Jiang was the director, president and sole shareholder of SecureM and incorporated the company in the Cayman Islands on Jan. 28, 2004. He then sold it about four months later to a British company for around $8.6 million.

From the sale of SecureM, Jiang received capital gains of at least $113,462 during 2004, $195,000 during 2005 and more than $2.63 million during 2006. He failed, however, to report the gains on his 2004, 2005 and 2006 federal income taxes, resulting in $467,336 in additional tax due, according to prosecutors.

Because of his regular travel overseas, Jiang has posted a $2 million bond.

The maximum statutory penalty for tax evasion is five years in prison and a fine of $100,000.

Saratoga man pleads guilty to one count of tax evasion

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