On Tuesday, June 5, 2018, it was announced that a Saratoga resident has been convicted of tax fraud. Jyh-Chau “Henry” Horng was found guilty of two counts of filing false tax returns and a single count of lying to the IRS during a 2010 audit. Horng’s wife, Meili “Ally” Lin, was also tried on two counts of tax fraud. In her case, the jury failed to reach a verdict on one count and acquitted her on the second count. 51-year-old Horng owned and operated an international trading business from his Saratoga home. Trial evidence showed that Horng filed joint tax returns for the 2006 and 2007 years.
Those returns underreported the couple’s income. On the 2006 return, the defendant reported the couple’s income as only $232,116. On the 2007 return, he reported that the couple had suffered a loss in the amount of $212,217. While under audit, Horng told the IRS auditor that the information in their loan applications were lies and were made up by their loan brokers. He told the auditor that they had no foreign bank account.
The evidence showed that the reported figures and Horng’s statements were demonstrably false. During the same 2006 to 2007 period, the defendants purchased millions of dollars of real estate, invested more than $5 million in a Milpitas shopping center and spent more than $350,000 using credit cards. A federal grand jury indicted Horng and Lin on January 28, 2015. Horng is now free on bail. A date for the sentencing hearing has not yet been set. Additional details have been made available here.