Alaska Businesswoman Sentenced for Tax Evasion Scheme

An Alaska woman was sentenced yesterday to 12 months in prison for evading taxes on income she earned from the business she operated.

According to court documents and statements made in court, Tina H. Yi, was the sole owner and operator of SJ Investment LLC, a hotel, bar, and liquor store in Nome, Alaska, that did business as Polaris HBL. Yi created the business in approximately April 2007 and operated it until approximately October 2017, when the property was destroyed in a fire.

From approximately 2014 to 2018, Yi maintained two sets of financial records relating to the business’s income and expenses, one of which accurately captured SJ Investment’s income and expenses, and one that understated the business’s income. Yi provided the false records to her accountant to prepare her tax returns. As a result, her 2014 through 2018 tax returns were false.

Yi caused a total tax loss to the IRS of over $550,000.

In addition to her prison sentence, U.S. District Judge Timothy M. Burgess for the District of Alaska ordered Yi to serve three years of supervised release. The court will determine restitution at a later date.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Michael J. Heyman for the District of Alaska made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorney John C. Gerardi of the Tax Division and Assistant U.S. Attorney Tom Bradley for the District of Alaska are prosecuting the case. Former Tax Division Trial Attorney Ahmed Almudallal assisted with the prosecution.