Saratoga Man Faces Arraignment On Tax Evasion Charges For His Charitable Foundation

SANTA CLARA COUNTY, CA – A South Bay accountant faces felony tax evasion charges for allegedly taking donation deductions from his charitable foundation, the ChenSung Family Foundation, purportedly set up to grant scholarships to rural students in Taiwan, according to the Santa Clara County District Attorney's Office.

According to a Franchise Tax Board investigation, Jimmy Chen, 62, of Saratoga, evaded close to $60,000 in state taxes by taking the deductions and filing false returns, the office said, adding that Chen used foundation funds to pay personal expenses, including a luxury condo equipped with a karaoke room.

Chen faces six felony counts of tax fraud, and if convicted, may face up to six years and four months in state prison, the D.A. said.

Chen is scheduled to be arraigned today at 1:30 p.m. in Department 23 of the Hall of Justice in San Jose.

“Tax invasion undermines the fairness that is important in our community’’ prosecutor Vonda Tracey said. “The District Attorney’s Office proactively pursues these types of cases."

The investigation shows that Chen set up the tax-exempt ChenSung Family Foundation in 2004, but aside from a single contribution of $250, ChenSung Family Foundation did not use its funds for any charitable purposes during the investigation period, the office said.

Instead, the D.A. claims evidence shows that Chen spent the foundation funds on a luxury condo in Taiwan that advertised such amenities as an indoor golf range, premiums on a life insurance policy for his wife
at the time, and other personal expenses.

Evidence further shows that Chen gave seminars on charitable foundations and helped others to
set up the foundations similar to his for a fee.

Anyone with additional information is asked to contact Deputy District Attorney Vonda Tracey 408-792-2580.

• Also see: Hotel Data Breach: Credit and Debit Card Data Stolen From 20 Hotels