LOS ANGELES – A Diamond Bar man pleaded guilty today to federal felony charges that he willfully failed to pay more than $200,000 in payroll taxes over a three-month period owed to a staffing company. the San Gabriel Valley.
Robinson Rin Yang, 54, known as “Robert Mora,” or “David Lee,” pleaded guilty to the crime of not paying employment taxes.
According to his plea agreement, from March 2016 to March 2020, Yang operated B&S Staffing, a staffing services company in Covina. From mid-2017 to the end of 2019, B&S accumulated significant unpaid employment tax liabilities, failed to file employment taxes on time, and repeatedly failed to make refunds. timely quarterly employment tax returns to the IRS. It should be noted that B&S has not filed – as of February 2019 – an employment tax return for the period ending June 30, 2017 to December 31, 2018.
After filing these tax returns, B&S again fell foul of its reporting obligations. B&S has not filed – as of September 2020 – an employment tax return for the quarterly tax period ending March 31, 2019, until December 31, 2019.
Yang admitted that he was aware of B&S’s tax situation, but that he voluntarily failed to pay to the IRS all business taxes that he owed and owed, including income taxes and Social Security and Medicare taxes withheld from the employee’s wages. Instead, Yang repeatedly used his control of B&S to direct payments from corporate bank accounts, which he controlled, for his own benefit.
For example, in July 2018, for the quarterly tax period ending June 30, 2018, Yang inadvertently underreported and paid approximately $221,108 in taxes. B&S salary.
In total, B&S received approximately $2,791,783 in unpaid employment taxes during this 2½-year period. Yang agreed to pay this amount as restitution to the IRS.
Yang also admitted that from 2017 to 2019, in order to frustrate the IRS’s collection activities on his personal income taxes – and to hide the true amount of his income – he did not he was paid by B&S. Instead, Yang caused weekly checks to be issued from B&S’s bank account to a company called “Advanced Business Consulting”, and deposited the checks into an account of the same name. name and control.
In addition, Yang used B&S funds for the down payment and monthly mortgage for his home purchase, but kept the property titled in another person’s name to hide the property. the property is Yang. Yang also directed payments from B&S’s corporate bank account to cover personal expenses, including a portion of her daughter’s college tuition, and financing for other business interests, including failed construction companies and failed restaurants.
Despite the fact that Yang earned hundreds of thousands of dollars from running B&S from 2017 to 2019, he failed to file his federal tax returns on time during those years.
U.S. District Judge George H. Wu has scheduled a sentencing hearing for February 27, 2023, at which time Yang faces up to five years in federal prison.
IRS Criminal Investigation is investigating this case.
Assistant United States Attorney James C. Hughes of the Major Fraud Unit is prosecuting the case.