DISTRICT ATTORNEY - NEW YORK COUNTY

NEWS RELEASE
November 28, 2007

Contact: Barbara Thompson
212.335.9400

Manhattan District Attorney Robert M. Morgenthau announced today that a 25 year-old former investment banking analyst pleaded guilty to stealing approximately $572,522 from the New York State Department of Taxation and Finance (“State Tax”) and attempting to steal an additional $4,640,010 in the form of tax refunds claimed on fraudulent tax returns.

WE JIN SHON was sentenced yesterday to 1 ½ - 4 ½ years in state prison and ordered to pay $282,863 in restitution to New York State.  The defendant has already made a restitution payment of  $289,659 to State Tax.

The defendant is a Canadian citizen who worked for Morgan Stanley in London.  The defendant pleaded guilty late yesterday in New York State Supreme Court.

All the tax refunds -- totaling $5,212,532 -- were sought through thirty fraudulent 2006 New York personal income tax returns that were electronically filed with State Tax  These thirty tax returns were filed in the names of other people. 

On each tax return, the defendant claimed that the purported taxpayer-described as an investment banker, a trader, a broker or a managing director – paid taxes on wage income ranging from $6.7 million to $9.7 million.  These tax returns also claimed charitable deductions ranging from $3 million to $4 million.  Each tax return claimed a refund ranging from $123,148 to $232,542.  The refunds sought totaled $5,212,532. 

The defendant received three refunds – totaling $575,522 – wired into bank accounts in his name.  The defendant had opened numerous accounts at Manhattan branches of various financial institutions, including JP Morgan Chase, North Fork Bank, Commerce Bank, Banco Popular, Sovereign Bank and Bank of America, in his own name.

The investigation began after the defendant tried to withdraw $189,681 from a North Fork Bank account and an observant assistant manager noticed that the source of the funds was a New York State tax refund in the name of another person.  The bank employee would not permit the defendant to withdraw the funds.  North Fork Bank then notified State Tax.

The defendant pleaded guilty to Grand Larceny in the Second Degree and Attempted Grand Larceny in the First Degree.  He was sentenced to concurrent sentences of 1 ½ years to 4 ½ years on each count of the indictment.

For their participation in the investigation, Mr. Morgenthau thanked the New York State Department of Taxation and Finance, and Acting Commissioner Barbara G. Billet, Deputy Commissioner William J. Comiskey, Assistant Deputy Commissioner Peter P. Farrell, Deputy Inspector General Mary Harris and Investigative Auditor Victor Vasta, of the Office of the Deputy Inspector General of the New York State Department of Taxation and Finance and special thanks to the entire the auditing and processing divisions of the New York State Department of Taxation and Finance Department, especially E-Services Specialist Joanne Touhey.

Mr. Morgenthau also thanked the New York City Police Department and Commissioner Raymond Kelly and District Attorney Squad Commander Captain Joseph Finn and Detective Robert Mistretta.

The case was handled by Assistant District Attorney Gilda I. Mariani, Chief of the Money Laundering and Tax Crimes Unit and assisted by Jason Campaiola, Investigative Analyst.

Defendant Information

WE JIN SHON, 6/18/1982

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