L.A. Accessories Company Owner Guilty of Tax Evasion
Shu Mei Chen, also known as Angela Chen, former owner of downtown Los Angeles accessories company Carnation Creations, pled guilty to a federal criminal tax charge of falsifying a corporate income tax return.
According to U.S. Attorney John S. Gordon, Chen admitted that nearly $1 million in gross receipts were omitted from a tax return for the year ending Oct. 31, 1995.
The Internal Revenue Service’s Criminal Investigation Los Angeles Field Office had conducted an investigation of the tax return and filed charges with the U.S. Attorney’s office after determining that Chen failed to report the money as income for Carnation Creations.
The U.S. Attorney’s office charged that Chen intentionally filed the return with the knowledge that it did not include all of the corporation’s earnings.
Chen now faces a maximum of up to three years in federal prison and a fine of up to $250,000. She is scheduled to be sentenced in February 2002.
E&T Fashion succeeded Chen in ownership of Carnation Creations. —Darryl James
