Dinh Kim Huynh, age 56, and Tony Ngoc Nguyen, age 50, and his wife Hang Nguet Thi Huynh, age 40, all of Waldorf, Maryland were sentenced today to 18 months in prison; 12 months and a day in prison; and 6 months home detention on electronic monitoring, respectively, followed by three years of supervised release for evasion of federal income taxes. U.S. District Judge Deborah K. Chasanow also ordered Huynh to make restitution of $365,662 and Nguyen and his wife to make restitution of $173,946. The defendants were also ordered to cooperate with the IRS with respect to a determination and payment of any additional payment of fines, penalties and interest.
According to the statements of fact presented at their guilty pleas, Dinh Kim Huynh owned New Nails salons in Waldorf and Prince Frederick, Maryland. In 2002, Dinh Huynh incorporated the salons into New Nails Corporation, Inc. During 1998, Tony Nguyen worked as a nail technician at Dinh Huynh’s New Nails Salons. In 1999, Tony and Dinh opened a New Nails Salon in Bowie, Maryland. Later that year, Tony Nguyen bought Dinh Huynh’s interest in the Bowie location.
On December 11, 2003, search warrants executed at Dinh’s and Nguyen’s residences and at the New Nails Salons recovered books and other records maintained on the salons’ operations.
The records recovered from Dinh showed that for the tax years 1998 to 2001, he failed to report $1,685,865 in gross receipts, and $856,000 in taxable income for the New Nail Salons in Waldorf and Prince Frederick and also failed to report $440,821 in gross receipts for New Nails Corporation, Inc. for 2002. In addition to the records, two receipts were recovered from the residence showing that on January 5, 2000, Dinh Huynh purchased jewelry for $73,000 in cash and purchased a 2001 Mercedes automobile with a $40,000 cash down payment. The additional tax due for tax years, 1998 to 2002 for Dinh Huynh, either individually or on behalf of New Nails, Corporation, is $365,662.
The records recovered from Tony Nguyen showed that for the years 1998 to 2002, he and his wife failed to report more than $737,000 in gross receipts, $483,000 in taxable income, and $151,000 of his wife’s commissions. A search warrant executed on a safe deposit box rented by Tony Nguyen and his wife on December 12, 2003 recovered $154,000 in cash and jewelry. The additional tax due for tax years 1998 to 2002 was $173,946.