FREMONT – An owner of a Fremont manufacturing company was sentenced to 10 months in prison last week for submitting false tax returns, federal prosecutors said.
Milpitas resident Cuong Chi Quan, also known as “Roger Quan,” pleaded guilty in April 2023 to a count each of willfully aiding and assisting in the preparation of a false tax return and willfully violating foreign bank account reporting requirements, the U.S. Attorney’s Office for the Northern District of California said in a statement Monday.
Quan, 56, admitted to underreporting his income by nearly $4.5 million as the owner and manager of QXQ, Inc., a Fremont-based manufacturer of circuit board test fixtures. He said that before 2014, his company maintained two sets of QuickBooks bookkeeping files. One set of books logged sales to customers in the U.S. and all of QXQ’s expenses. The other set recorded sales to customers in Asia.
Quan told QXQ’s customers in Asia to wire their payments to QXQ’s bank accounts in New Zealand. The income and expenses of the company were reported on Quan’s individual tax returns, according to federal prosecutors.