By Khalida Sarwari
A Saratoga man was sentenced in October to more than a year in prison for tax evasion.
Jonathan Jianguo Jiang, 48, was sentenced Oct. 23 to 16 months imprisonment for failing to report capital gains for the sale of his company, according to the Northern District of the U.S. Attorney’s Office.
Jiang was the director, president and sole shareholder of SecureM. He incorporated the company in the Cayman Islands on Jan. 28, 2004, and sold it on April 17, 2004, to a UK company for around $8.6 million.
From 2004 to 2006, he received capital gains of about $2.9 million from the sale of SecureM, but is alleged to have willfully omitted the capital gains from his 2004, 2005 and 2006 federal income tax returns. Jiang’s omissions resulted in $467,336 of additional tax due, according to investigators.
Jiang was charged with one count of income tax evasion for the 2004 tax year on March 6, 2012, to which he pleaded guilty a year later. A U.S. District Court judge subsequently sentenced him to a three-year period of supervised release and ordered him to pay $467,336 in restitution. He is expected to begin serving the sentence on March 14. Jiang also paid a civil tax liability, which includes penalties and interest of more than $3 million.
Jiang’s case was prosecuted by assistant U.S. Attorney Cynthia Stier. The prosecution was the result of an investigation by the criminal investigation unit of the Internal Revenue Service.
Saratoga man fails to report capital gains, going to prison for tax evasion
