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October 1, 2004
THREE INDICTED ON
$6.7 MILLION BANKRUPTCY FRAUD SCHEME
The United States Attorney's Office for the Northern District of California announced that Jimmy Quan (Toha Quan), 44, Anna Wong (Anna You Nor Wong), 41 and Jenny Wong, (Jenny Yee Nor Wong), 39, were indicted yesterday by a federal grand jury in San Francisco. Anna Wong and Jimmy Quan were charged with eight counts of bankruptcy fraud, six counts of false record entry; two counts of false declaration; fourteen counts of concealment of assets, and five counts of money laundering. Jenny Wong was indicted on eight counts of bankruptcy fraud, one count of false declaration and ten counts of concealment of assets. All three defendants are from San Francisco.
According to the indictment, the defendants devised a scheme to defraud the United States Bankruptcy Court for the Northern District of California and the creditors of three San Francisco companies who filed for bankruptcy. These companies were Win Fashion Inc., Wins of California, and Tomi LLC. Win Fashion Inc. and Wins of California were engaged in the garment business. Tomi LLC was engaged in the property management business. Win Fashion Inc., Wins of California, and Tomi LLC filed for Chapter 11 bankruptcy in 1997, 2001, and 2003, respectively.
One purpose of the alleged scheme was to conceal the assets of the three companies from the creditors of the companies as well as from the Bankruptcy Court. Altogether the defendants concealed over $2 million in various kinds of property garments and fabric, checks for goods sold and an interest in real estate. A second purpose of the scheme was to divert revenues from Win Fashion Inc. to companies controlled by the defendants while Win Fashion Inc. continued to incur some of the expenses of producing the diverted revenues. Between 1997 to 2001, the defendants diverted approximately $4.7 million.
The maximum statutory penalty for each count of: bankruptcy fraud in violation 18 U.S.C. § 157; false record entry in violation of 18 U.S.C. § 152(8); false declaration in violation of 18 U.S.C. § 152(3) and concealment of assets in violation of 18 U.S.C. § 152(7) is five years imprisonment and a fine of $250,000 plus restitution. The maximum statutory penalty for each count of money laundering in violation of 18 U.S.C. § 1956(a)(1)(B)(i) is twenty years imprisonment and a fine of either $500,000 or not more than twice the value of the property involved in the money laundering transaction, whichever is greater. An indictment simply contains allegations against an individual and, as with all defendants, Quan and Wong must be presumed innocent unless and until convicted.
The defendants will make an initial appearance on Tuesday, October 5, 2004, at 9:30 a.m. before Magistrate Judge Spero.
The prosecution is the result of a lengthy investigation by agents of the Federal Bureau of Investigation; Internal Revenue Service; U.S. Department of Labor, Office of Inspector General; U.S. Immigration & Customs Enforcement, and the Employment Development Department of the State of California. Lawrence J. Leigh is the Assistant U.S. Attorney who is prosecuting the case with the assistance of legal technician Nancy Dick.
A copy of this press release may be found on the U.S. Attorney's Office's website at www.usdoj.gov/usao/can.
All press inquiries to the U.S. Attorney's Office should be directed to Luke Macaulay at 415-436-6757.
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