On Dec. 19, Alex and Sam Nguyen, the husband-and-wife owners of a precious metal business in Los Angeles’ jewelry district, pleaded guilty to one count of conspiracy in California federal court, for allegedly concealing over $100 million in cash transactions from the U.S. government.
The couple’s jewelry business, Newport Gold Post, also pleaded guilty to the conspiracy charge.
A Department of Justice statement charged that the couple’s businesses repeatedly failed to file Form 8300s for cash purchases over $10,000, as required by law, despite conducting at least $127 million in transactions over that threshold.
According to the DOJ, in one case, the Nguyens sold $140,000 in silver to a customer carrying cash in a suitcase, with half that money wrapped in heat-sealed packages. During the transaction, the company “did not ask for identification, did not inquire about the source of the cash, and intentionally did not file a Form 8300 for the transaction,” according to the government.
The two defendants also admitted that their company failed to institute an anti–money laundering program as required by federal law, despite multiple warnings from IRS auditors to do so, prosecutors said.
Alex Nguyen also pleaded guilty to one count of filing a false tax return. The government said that from 2016 through 2020, Alex didn’t list income from the Nguyen’s family businesses on his tax return, and didn’t report $1,535,330 in 2019 alone.
The Nguyens’ attorney didn’t return a request for comment by press time.
The IRS rules on filing Form 8300 for small business can be seen here. The Jewelers Vigilance Committee’s guide to setting up an anti–money laundering program can be seen here.
(Photo: Getty Images)
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