The co-owner of a New York acupuncture business pleaded guilty yesterday to aiding and assisting in the preparation of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Nikki B. Yu of Queens, New York, co-owned and operated Wellife Physical Therapy and Acupuncture PLLC (Wellife), and was also involved in the operation of Welling Physical Therapy and Acupuncture PLLC (Welling), both of which had locations throughout New York City. Yu used a series of management companies in order to receive untaxed income from the businesses. She and others transferred funds from Welling and Wellife to the management companies, but did not report those funds to the IRS. Rather, Yu and others cashed approximately $3 million in checks payable to the management companies at a check cashing business, and then provided false and incomplete information to her tax return preparers by failing to disclose this check cashing activity. As part of her plea agreement, Yu admitted that she caused six false income tax returns to be filed on behalf of the management companies, understating their gross receipts.
U.S. District Judge Ann M. Donnelly set sentencing for April 21, 2021. Yu faces up to three years in prison and a $250,000 fine.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who investigated the case, and Trial Attorneys Anahi Cortada and Thomas Koelbl of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Eastern District of New York for their assistance in this matter.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.