By Khalida Sarwari
A 62-year-old Saratoga accountant faces prison time for taking donation deductions from his charitable foundation to buy things such as a luxury condo in Taiwan, prosecutors said.
Jimmy Chen was charged with six felony counts of tax evasion for taking money from the ChenSung Family Foundation, which was created to grant scholarships to rural students in Taiwan, according to the Santa Clara County District Attorney’s Office.
He is suspected of using those funds to pay for personal expenses, including a luxury condo with amenities such as a karaoke room and indoor golf range and premiums on a life insurance policy for his wife. He’s also accused of evading nearly $60,000 in state taxes by taking the deductions and filing false returns.
Prosecutors believe Chen set up the tax-exempt foundation in 2004. Aside from a one-time contribution of $250, it appears the foundation did not use its funds for any charitable purposes, according to prosecutors.
“Tax evasion undermines the fairness that is important in our community,” prosecutor Vonda Tracey said in a statement. “The district attorney’s office proactively pursues these types of cases.”
The investigation, conducted by the Franchise Tax Board, also showed that Chen gave seminars on charitable foundations and helped others to set up the foundations similar to his for a fee, prosecutors said.
If convicted, Chen faces up to six years and four months in state prison.
He was scheduled to be arraigned on Aug. 16 at the Hall of Justice in San Jose.
Anyone with information relevant to the case is asked to contact Tracey at 408.792.2580.
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