Fort Belvoir, Va. –
DCAA Operations Investigative Support members Gina Vaughan, Senior Auditor, and Sandra Porter, Supervisory Auditor assisted in a case resulting in a Newport News woman being sentenced on January 5, 2023, to 52 months in prison and ordered to pay a $200,000 fine for evading the assessment of her 2015 and 2016 income tax returns.
According to court documents, Nosuk Kim was formerly a licensed attorney, substitute judge, and member of the disciplinary committee for the Virginia State Bar. While serving in these capacities, she and her husband laundered more than $2.2 million in fraud proceeds through an entity in China and her attorney-trust account. The defendant used these funds to pay down a home equity line of credit on the family home and to purchase other real estate investments.
The laundered funds were proceeds of her husband’s extensive procurement fraud scheme involving more than $7 million in government contracts. The defendant’s husband, Beyung Kim, was previously prosecuted in the Eastern District of Virginia and sentenced to 58 months in prison in August 2021.
Despite laundering approximately $970,000 of taxable income in 2015 and approximately $1,250,000 of taxable income in 2016, the defendant did not report any of this income on her federal income taxes for those tax years. As a result of her tax fraud, the defendant caused approximately $868,924.54 in lost tax revenue to the United States.
DCAA auditors Ms. Vaughn and Ms. Porter assisted with the case by performing numerous financial analyses, including bank statement reviews, tracing transfers, and damage calculations.
Read the Department of Justice press release.