BALTIMORE, Md. (WUSA) -- A Maryland business owner plead guilty for failing to report income and evading over $522,000 in federal and state taxes, the United States Attorney informed.
Bae Soo "Chris" Chon, 49 years old of Beltsville, Md., owned cosmetic manufacturing company named Mirage Cosmetics, Inc. The company distributed cosmetics domestically and internationally.
In 2008, Chon began depositing proceeds into foreign accounts. Approximately $1,818,895 worth of revenue was deposited in these overseas accounts and was not reflected on Mirage's records.
In 2010, the IRS executed a search warrant of Chon's business. That same year he reported all his earnings including the overseas accounts in his tax report and paid due taxes.
"Chon has agreed to pay $412,404 in restitution to the IRS for federal taxes owed for the tax years 2008 and 2009, plus penalties and interest," the United States Attorney Office said in a press release. "Chon tendered two checks to the IRS on September 11, 2012 for $111,069.72 and $679,775.78, reflecting the agreed restitution and his counsel's calculation of the amount of the applicable interest and penalties, for the tax years 2008 and 2009 respectively."
Chon will also be required to pay 50% of the highest balance he has overseas for the 2009 calendar year.
He faces a maximum sentence of five years in prison and a $100,000 fine.