SAN JOSE (BCN) — A Saratoga man has been charged in Santa Clara County Superior Court with felony tax evasion for allegedly taking donation deductions from a charity he set up in order to purchase a luxury condominium in Taiwan, among other personal expenses, prosecutors said on Tuesday.
Jimmy Chen, 62, allegedly evaded nearly $60,000 in state taxes by taking the deductions and filing false returns, prosecutors said.
Chen was scheduled for arraignment Tuesday afternoon. If convicted, he could face up to six years and four months in state prison.
According to the district attorney’s office, in 2004 Chen set up a tax-exempt foundation, the ChenSung Family Foundation. Since it began, however, the foundation only made one single contribution of $250.
The rest of the foundation’s funds were then used to buy a luxury condo in Taiwan, equipped with its own karaoke room, as well as premiums on a life insurance policy for him and his wife at the time and other personal expenses, prosecutors said.
Additionally, Chen held seminars, teaching others how to set up a charitable foundation similar to his for a fee, according to the district attorney’s office.
“Tax evasion undermines the fairness that is important in our community,” Deputy District Attorney Vonda Tracey said. “The District Attorney’s Office proactively pursues these types of cases.”
A defense attorney for Chen was not immediately available for comment.