By Staff
NORTHWEST ASIAN WEEKLY
John Yin of Everett — who sold software allowing businesses to underreport their sales to avoid paying taxes — was sentenced on April 14 to 18 months in federal prison.
Yin, 66, also must pay back $3.4 million, along with restaurants who used his product.
The U.S. Department of Justice said Yin sold software built by Profitek, a Vancouver, Canada company that sells point-of-sale software for recording transactions by restaurants and other businesses.
He also sold, according to the U.S. Attorney’s Office, a tool called “Tax Zapper” that Profitek either built or commissioned from a Chinese affiliate to help customers hide cash transactions to reduce tax payments.
Prosecutors say eight restaurants in the Seattle area were found to be using this software and have underpaid their taxes by between $145,000 and $910,000, between 2010 and 2013.
Yin pleaded guilty last year in U.S. District Court to wire fraud and conspiracy to defraud the government.