The owner of a Fullerton, CA, auto body shop has admitted to underreporting $1.2 million in income, filing false tax returns for seven years and evading federal taxes, according to a plea agreement.
Chun Jung, 57, of Anaheim, the sole shareholder of JY JBMT INC., doing business as JY Auto Body in Fullerton, pleaded guilty to intentionally concealing income from 2015 through 2022. The scheme involved cashing customer checks worth approximately $1,157,462 at multiple check-cashing services in Garden Grove and withholding these receipts from his tax return preparer.
"Through his actions, Mr. Jung essentially stole from every American taxpayer," said Tyler Hatcher, special agent in charge of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office. "Tax crimes hurt everyone, and we will aggressively pursue criminal tax evaders."
As part of the plea agreement, Jung will pay $300,145 in taxes owed to the IRS. Additionally, he faces a $250,000 fine and up to three years in federal prison. Sentencing is scheduled for Jan. 31, 2025, before U.S. District Judge John W. Holcomb.
Jung's actions were particularly egregious given JY JBMT INC.’s structure as a subchapter S corporation. This designation allows corporate income to pass through directly to the owner, making his deliberate omission of income a direct violation of federal tax law.
The IRS-CI led the investigation. Assistant U.S. Attorney Kristin Spencer is prosecuting the case.
