18 tax evasion charges filed vs Sako, 2 execs

The Attorney General’s Office lodged multiple criminal charges against Sako Corp. and two of its officers yesterday for several instances of alleged tax evasion.

Eighteen counts of alleged failure to pay taxes were filed against the company, Hee Kun Kyun and Hyung Ki Min, records at the Superior Court showed.

The defendants face a maximum penalty of $10,000, two years imprisonment, or both, for each count if they are convicted. The defendants may also be held liable for costs that would be incurred by the government in prosecuting the case.

The court summoned the defendants to appear before it on April 4.

Assistant attorney general Kevin Lynch filed the charges against the company and the two officers, alleging that they deliberately failed to truthfully account for and pay taxes as required by the CNMI Tax Code.

Lynch said the company and the two officers committed the offenses on several taxable quarters beginning July 31, 2002 until Jan. 30, 2005.

Lynch could not be reached for an interview yesterday regarding the estimated amount of unpaid taxes allegedly owed by the company but CNMI chief prosecutor David Hutton earlier said that the total amount was “huge.”

Hutton earlier disclosed that investigations were being conducted on Sako Corp. and its officers, including an alleged attempt to transfer company funds and equipment out of the CNMI and evading payment of taxes. Reports have it that the company managed to ship some machines and equipment to Cambodia.

The investigations began soon after Sako and its affiliate companies, Mariana Fashions and Dong Dang Fashion Corp, ceased local business operations last month due to the garment industry’s diminished competitiveness after the lifting of quota restrictions on apparel pursuant to World Trade Organization agreement at the beginning of the year.

One of the defendants, Hee Kun Kyun, has already fled the CNMI, Hutton said. The AGO discovered that Kyun has seven different passports and that he used a different passport other than the one he used upon entry into the CNMI.

The prosecutor had also disclosed that another Sako officer, Kwon Myung Hee, also fled the CNMI “to hinder or thwart the criminal investigation and/or to avoid possible criminal prosecution.” No charges have been filed in court against Kwon.

The flight of Hee and Kwon prompted the AGO to have other Sako officers detained as “material witnesses” to the probe. Those who were detained earlier this month include Jun Young Ham, Ha Myung Sam and Karmina Okamura, but the court eventually released them on bail.