The owner of a chain of clothing stores in and around Tucson and Phoenix has pleaded guilty to tax evasion.Β
Authorities say Sung Hwan Lee, the owner of BBB Fashion, conducted a scheme to evade taxes by underreporting a total income of more than $9 million, resulting in a total tax owed of more than $3 million between 2012 and 2016 on his personal returns.Β
According to a news release from the IRS, he directed his employees to give him any cash received from customers and to keep a second set of books and records to track his true versus reported income and expenses. At his direction, the books and records provided to his accountant for tax return preparation omitted cash receipts.Β
BBB Fashion's bookkeeper, Young Bok Lee, also pleaded guilty to conspiracy to defraud the United States
Sung Hwan Lee has owned the business since 1998. He will be sentenced Sept. 21.
Young Bok Lee worked there performing bookkeeping, payroll and management duties from 2006 through 2020. His sentencing is set for July 28.Β
