The former owner of a Manhattan sewing business that supplied work to couture companies pleaded guilty to tax evasion Monday after distributing more than $1.9 million in employee wages off the books.
This story first appeared in the December 1, 2009 issue of WWD. Subscribe Today.
In operating Match Fashions Inc. between 2004 and 2006, Dong Sun Mun routinely cashed customers’ checks and then paid employees without withholding federally mandated taxes, the Manhattan U.S. Attorney’s Office said. Mun failed to remit more than $304,000 in taxes over the two-year period, according to authorities’ calculations.
Mun could not be reached for comment at press time.
The 50-year-old Palisades Park, N.J., resident pleaded guilty to one count each of tax evasion and willful failure to account for and “pay over” payroll taxes, prosecutors said. He faces a maximum sentence of five years in prison on each charge and a $250,000 fine when he is sentenced on March 12.
Mun is the latest in a string of New York-area garment subcontractors targeted by Internal Revenue Service investigations.
In September, a judge sentenced Mindy Wong, owner of Devine Fashion Corp., to five months in prison on charges similar to those brought against Mun. In September 2008, Kevin Weng, owner of stitch firm Maple Corp., was sentenced to four years’ probation on tax charges and in June 2008, Divine Couture Corp. owner Raymond Chu received a two-year sentence for payroll violations.
Court records weren’t available at press time Monday. Details were disclosed by the U.S. Attorney’s Office.