SAN JOSE — The owner of a Fremont business has pleaded guilty to filing false income tax returns in a scheme to avoid paying millions of dollars, authorities said Tuesday.
Robert Chi Quan, 55, of Milpitas, admitted in his plea that he knowingly avoided reporting the existence of at least 11 foreign bank accounts as part of the underreporting of his 2017 business income, U.S. Attorney Ismail J. Ramsey of the Northern District of California said in a statement. One of those accounts contained $12.1 million dollars on April 15, 2018, the date the taxes were filed.According to Ramsey, Quan owned and operated Fremont-based QXQ, Inc.
One set of books recorded sales to customers in the United States and all of QXQ’s expenses, Ramsey said. The second set of books recorded sales to customers in Asia. Ramsey said that Quan instructed those customers to wire transfer their payments to QXQ’s bank accounts in New Zealand. In his plea, Quan admitted to reporting only the sales to customers in the United State and all of QXQ’s expenses in his tax filing, Ramsey said. He also acknowledged not telling his tax preparer about the other accounts.