Chester County Man Pleads Guilty to Tax Fraud

PHILADELPHIA - United States Attorney David Metcalf announced that Kelong Han, 43, of Paoli, Pennsylvania, entered a plea of guilty before United States District Judge Kelley Brisbon Hodge this week to two counts of filing a false tax return.

The defendant was charged by information in September; with his plea, he has waived prosecution by indictment.

As detailed in court filings and statements, Han willfully made and filed a United States Individual Income Tax Return Form 1040 for the calendar year 2020 and 2022, verified by a written declaration that it was made under the penalty of perjury, which he knew was not true and correct. Han created two fictitious businesses and filed Schedule Cs concerning those fake entities, claiming that his wife and young children worked at those false businesses and earned wages. In reality, his family did not receive wages, nor did the businesses earn any revenue.

For 2020, Han's return reported taxable income of $9,531, when, in fact, as Han knew, his actual taxable income was approximately $1,028,524. Similarly, for 2022, Han reported taxable income of $115,053 when, as he knew, his taxable income was substantially higher, approximately $1,002,173.

Han also fraudulently applied for Paycheck Protection Program loans for the fake businesses and received approximately $220,000. As part of his plea agreement, Han will pay $1,723,658 in restitution for his criminal acts.

The defendant is scheduled to be sentenced on March 31 and faces a maximum possible term of six years in prison and a $500,000 fine.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

This case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant United States Attorney Eric D. Gill.