Owner of BBB Fashion stores in Arizona pleads guilty to tax evasion

PHOENIX — The business owner of a chain of clothing stores around Arizona pleaded guilty earlier this year to tax evasion, authorities said Tuesday.

Sung Hwan Lee, who owned and operated BBB Fashion stores in metro Phoenix and Tucson since 1998, conducted a scheme to evade taxes by intentionally underreporting $9.3 million of income, the Internal Revenue Service’s Criminal Investigation said in a press release.

The man, beginning no later than 2012 and continuing through 2016, told employees of the company to give him any cash received from customers, the IRS said.

He also directed Young Bok Lee, who did bookkeeping, payroll and management duties for the company from 2006 through 2020, to keep a second set of books and records to track true income and expenses versus that which was reported.

Young Bok Lee, who under the direction of his boss also provided false financial data to the company’s accountant, pleaded guilty last week to conspiracy to defraud the United States for his role in the scheme.

Sung Hwan Lee is scheduled to be sentenced in September, while Young Bok Lee is scheduled to be sentenced in July.

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