Santa Clarita man sentenced to five months in federal prison for deliberately underreporting chiropractic practice income


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Date: July 30, 2021


LOS ANGELES — A Santa Clarita man has been sentenced to five months in federal prison and also six months of home confinement, for substantially underreporting on his personal income tax returns the money he made from his chiropractic service over a four-year period.

Jong Moon Chung was sentenced on Thursday by United States District Judge John A. Kronstadt, who also ordered him to pay $144,759 in restitution and a $25,000 criminal fine. Chung pleaded guilty in December 2020 to one count of aiding or assisting in the preparation of a false tax return.

Chung owned and operated J Chung Chiropractic Clinic. From April 2014 to June 2017, Chung aided and assisted in the preparation of his personal federal income tax returns that were false and fraudulent as to material matters.

For example, in 2013, Chung cashed checks he received for his chiropractic services in the amount of $121,229 at a check-cashing business, rather than depositing them in a bank account. Chang earned approximately $140,989 in additional income that year for a total income of approximately $262,218. But Chung only reported a total income of $71,031 on his Form 1040 for the tax year 2013.

Chung engaged in similar behavior for the next three tax years, cashing his checks for chiropractic services at a check-cashing business instead of depositing them at a bank. As a result, Chung underreported his income by tens of thousands of dollars for each of the tax years 2014, 2015 and 2016. In each instance, Chung acted willfully to falsely understate his annual income and minimize his tax liability.

"Jong Chung is a man who came to the United States for a better life and to live the 'American dream,' but appears to have acted out of 'greed,'" said IRS-Criminal Investigation Los Angeles Field Office Special Agent in Charge Ryan Korner. "This case highlights IRS-CI's ongoing commitment to justice. Those who fail to pay their fair share will be held accountable."

Chung was ordered to surrender to the Federal Bureau of Prisons no later than February 1, 2022.

IRS Criminal Investigation investigated this case.

Assistant United States Attorney Alexander P. Robbins of the United States Attorney's Office for the Central District of California prosecuted this matter.