December 4, 2003
For Immediate Release
P R E S S R E L E A S E
Edward H. Kubo, Jr., United States Attorney for the District of Hawaii, announced that a federal grand jury returned an eleven-count superseding indictment yesterday charging ANDY S.S. YIP and BRENDA M. O. CHUNG with conspiracy to defraud the United States for the purpose of impeding the lawful government functions of the Internal Revenue Service (IRS). YIP, who was originally indicted in May 2002, was also charged with subscribing to a false Form 1040, U.S. Individual Income Tax Return for the years 1995 through 1998 and with subscribing to a false Form 1040 for the years 1998 and 1999 for failing to disclose his interest in financial accounts in a foreign country. CHUNG is also charged in the superseding indictment with two counts of witness tampering.
The superseding indictment alleges that, in early 1998, CHUNG contacted a person to help CHUNG's boyfriend, YIP, with his "small tax problem." CHUNG requested that this person tell the IRS that she had loaned YIP $350,000.00. The superseding indictment alleges that the person mailed a letter to the IRS, and then later met with the IRS, stating that YIP had borrowed a total of $350,000.00 from the person in 1996. The obstruction charges against CHUNG stem from CHUNG informing the person that YIP had been indicted and trying to persuade the person to remain outside the United States to avoid testifying.
The counts charged in the superseding indictment carry penalties ranging from three to ten years imprisonment and a fine of up to $250,000. The length of any term of imprisonment imposed is determined by the Federal Sentencing Guidelines.
United States Attorney Kubo cautioned that an indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
This indictment was a result of an investigation by Criminal Investigation of the Internal Revenue Service. The prosecution is being handled by Assistant United States Attorney Leslie E. Osborne, Jr.
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