MONTRÉAL, March 18, 2015 /CNW/ - Sy Veng Chun and Leng Ky Lech, the owners of currency exchange offices in Montréal, were sentenced today at the Montréal courthouse to eight years in jail each. Mr. Chun and Mrs. Lech, along with their respective businesses, A&A Services monétaires Inc. and Peng Heng Or Gold Inc., were also fined a total of over $9.4 million. Should they fail to pay some of these fines, Mr. Chun and Mrs. Lech will have to serve an additional five years in jail, to be added to their sentence. They were found guilty last September 15th of 13 counts of tax evasion, possession of property obtained by crime, and laundering the proceeds of crime.
The Canada Revenue Agency (CRA) investigation, following a joint Royal Canadian Mounted Police and Service de Police de la ville de Montréal investigation into money laundering, revealed that Sy Veng Chun and Leng Ky Lech orchestrated a scheme to help Daniel Muir, a drug dealer that was murdered in downtown Montréal in 2004, to avoid paying income tax. To do so, Mr. Chun and Mrs. Lech knowingly left out of their businesses' books and records important information about almost $17 million in transactions including sales, money transfers to Cambodia and purchases of US currency.
All alleged facts occurred between January 2000 and November 2005. In addition to these fines and jail sentences, Sy Veng Chun and Leng Ky Lech will have to pay the full amount of tax owing, plus related interest and any penalties that apply.
All case-specific information above was obtained from the court records.
The CRA pursues tax evaders to maintain public confidence in the integrity of the tax system. Canadians have to trust that our self-assessment system is working and that it is fair.
If you have ever made a tax mistake or omission, the CRA is offering you a second chance to make things right through its Voluntary Disclosures Program (VDP). If you make a valid disclosure before you become aware that the CRA is taking action against you, you may only have to pay the taxes owing plus interest. More information on the VDP can be found on the CRA's website at www.cra.gc.ca/voluntarydisclosures.
Additional information on convictions can be found on the Media page of the CRA website at www.cra.gc.ca/convictions.
SOURCE Agence du revenu du Canada
For further information: Julie Pronovost, Regional Spokesperson, Telephone: 514-283-2226