PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Heng Han, 49, of Bensalem, PA, owner of HBH Global Resources, Ltd., was charged by Indictment on charges related to his alleged failure to pay over the trust fund portion of HBH’s employment taxes for quarters in 2015 to the Internal Revenue Service, and filing false individual and corporate tax returns with the IRS for tax years 2012 through 2015. The defendant made his initial appearance in federal court on these charges this afternoon.
According to the Indictment, as the proprietor of HBH, the defendant provided temporary employees to work for client companies in various industries, including light and heavy manufacturing and construction work. Han was legally obligated to withhold payroll taxes from wages paid to his employees and was responsible to pay over these taxes to the IRS. He was also required to file, following the end of each calendar quarter, an Employer’s Quarterly Federal Income Tax Return (Form 941), setting forth the total amount of wages and other compensation subject to withholding, the total amount of income tax withheld, and the total amount of social security and Medicare taxes due to the IRS. Although Han late-filed the Forms 941, he has allegedly never paid over a combined total of approximately $1,739,560. in withholding taxes due to the IRS for the years 2012 through 2015.
The Indictment further alleges that from 2012 through 2015, Han also never filed corporate or individual tax returns. In 2016, Han is alleged to have filed corporate and individual tax returns, but they were false in that he underreported HBH’s gross receipts for each of the calendar years from 2012 through 2015 by approximately $5,184,450. His alleged criminal conduct resulted in a tax loss of approximately $1,771,550.
“Heng Han’s alleged scheme to enrich himself victimized honest American taxpayers and business owners who pay their tax obligations,” U.S. Attorney Williams said. “Over years, he caused the IRS to lose millions of dollars in tax revenue. This type of fraud will be aggressively investigated and prosecuted by this Office.”
“Employment tax fraud is a serious crime that hurts honest employees as well as the United States Treasury,” said Yury Kruty, Acting Special Agent in Charge of the Philadelphia field Office for IRS-Criminal Investigation. “Because of the detrimental impact this type of misconduct has on the American taxpayers, investigating employment tax fraud will continue to be a priority for the special agents of IRS-CI.”
If convicted, the defendant faces a maximum possible sentence of 22 years in prison and a $420,000 fine. The defendant may also be responsible for the full amount of the taxes due, in addition to the payment of penalties and interest to the Internal Revenue Service.
The case was investigated by the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Anita Eve.
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