The husband-and-wife owners of precious metals businesses in downtown Los Angeles pleaded guilty Friday to federal charges for concealing millions of dollars’ worth of cash transactions, failing to maintain an anti-money laundering program and using the unreported cash at other businesses.
Alex Nguyen, 50, of Irvine; Sam Nguyen, 52, also of Irvine, who is Alex Nguyen’s wife; and Newport Gold Post Inc., one of the companies they own, pleaded guilty to conspiracy in Los Angeles federal court. Alex Nguyen also pleaded guilty to one count of filing a false tax return.
According to their plea agreements, from May 2013 to March 2022, Alex and Sam Nguyen owned several family businesses that bought and sold precious metals, including Newport Gold Post, Goldtech Assay Laboratory, Sam Bullion and Coin, and AAPS Bullion.
The businesses received millions of dollars in cash from their customers, requiring the Nguyens to file paperwork with the Internal Revenue Service. Alex and Sam Nguyen repeatedly failed to file required papers with the IRS, where they were supposed to report cash transactions over $10,000, according to the U.S. Attorney’s Office.
For example, during a February 2020 transaction, a buyer asked for a receipt after buying 40.2 pounds of silver for nearly $11,766, Alex Nguyen replied, “Not for cash” and did not ask the buyer to show any identification, court papers show.
As the year progressed, the buyer made multiple purchases of silver from Alex Nguyen, culminating in December 2020, when the buyer brought a suitcase containing $140,000 in cash — with half of the cash wrapped in heat-sealed packages. Alex Nguyen took the cash and provided 320 pounds of silver. Prosecutors say during the transactions, Alex Nguyen failed to file required forms with the IRS.
While operating the family businesses, Alex Nguyen received $200,000 to $1 million in cash daily from customers. He used the cash to purchase precious metals from other L.A. Jewelry District businesses, agreeing with other business operators to not file completed tax forms, his plea agreement show.
In her plea deal, Sam Nguyen admitted to intentionally failing to file tax forms for multiple precious metals transactions, including in July 2021, when a buyer purchased 50 one-ounce gold bars at Newport Gold for $100,000. Sam Nguyen told the buyer that she preferred shrink-wrapped cash because sometimes she received cash that had been buried underground, papers show.
The defendants further admitted to failing to develop, implement, and maintain an anti-money laundering program as required by federal law.
Further, Alex and Sam Nguyen admitted to lying to federal officials, including IRS auditors and the FBI.
The total tax due and owing for all five years in question is between $1.76 million and $1.87 million, according to court documents.
U.S. District Judge Michelle Williams Court scheduled June 5 sentencing hearings. At that time, Alex Nguyen will face up to eight years in federal prison, Sam Nguyen will face up to five years in federal prison, and Newport Gold Post will face up to five years of probation and a $500,000 fine, according to the U.S. Attorney’s Office.
Good , guess it’s all about FAFO.