Fremont tech company owner pleads guilty in multi-million dollar tax fraud scheme
SAN JOSE -- The owner of a tech company based in Fremont pleaded guilty to crimes related to a scheme to underreport his income by millions of dollars, according to federal prosecutors.
Roger Chi Quan, 55, of Milpitas, owned and operated QXQ Inc., which makes circuit board test fixtures. In his plea agreement, Quan admitted that he had kept two sets of books for the business since before 2014, one set for U.S. customers and another for customers in Asia.
Quan acknowledged that he gave only the U.S. books to his income tax preparer, causing his 2017 federal income taxes to be underreported by nearly $1.8 million.
Quan also admitted he had signature authority for at least 11 foreign bank accounts, where he had his customers in Asia send their payments to his business.
Prosecutors said one of these accounts held a balance of at least $12,137,288.50 on April 15, 2018.
Quan agreed to pay $8,167,733 of restitution to the IRS for the tax years 2014-2018.
Quan was charged in March with one count each of willfully aiding and assisting in the preparation of a false tax return and willfully violating foreign bank account reporting requirements.
Quan's sentencing hearing is scheduled for Sept. 25.