SEATTLE — This story was originally published on MyNorthwest.com
A 69-year-old Seattle real estate owner has been convicted of six counts of tax evasion and six counts of making false tax returns, the Department of Justice (DOJ) announced Monday.
Steven T. Loo reportedly failed to declare his income of more than $4.7 million on his tax returns. Loo also used “shell companies” and repeated transfers of funds to hide his income from the Internal Revenue Service (IRS).
Seattle real estate owner found guilty of tax fraud
According to court records, Loo had an ownership interest in and operated multiple commercial real estate properties in Washington and California. Loo had property management companies send the profits from the properties to two bank accounts he was in control of.
Loo spent the money for the benefit of himself, his family, and friends, also reinvesting the funds in other businesses in his control; however, Loo did not record the more than $4.7 million in profits on his tax returns.
The income from the eight properties operated by Loo via limited liability companies (LLCs) was deposited into bank accounts with two inactive entities that were both established in Washington in 1999, according to the DOJ.
Loo did not report the income to the IRS, failing to inform his tax return preparer of the funds that were income from his properties.
“Mr. Loo was strategic — he was deceptive — and he was incredibly profitable. This isn’t a mistake. This isn’t forgetfulness. This isn’t sloppiness. This is strategic,” Assistant U.S. Attorney Sean Waite told the jury, according to the DOJ. “It’s criminal. Mr. Loo made $4.7 million. He reported negative income. That feels wrong because it is wrong. No one wants to pay taxes, but nurses, firefighters, and teachers all pay them. Mr. Loo needs to pay his share.”
After the jury deliberated for roughly seven hours, Loo was found guilty of six counts of tax evasion and six counts of making and subscribing to a false tax return.
Each count of tax evasion Loo was found guilty of is punishable by up to five years in prison, and making and subscribing to a false tax return is punishable by up to three years in prison.
U.S. District Court Judge King will determine the final sentence for Loo after considering sentencing guidelines and other statutory factors.
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