SIU-C professor convicted of lying to IRS about foreign bank account

BENTON, Ill. (KBSI) – A Southern Illinois University-Carbondale mathematics professors was convicted by a federal jury of lying to federal authorities about a foreign bank in China in 2017, 2018, and 2019.

Dr. Mingqing Xiao, 60, of Makanda was convicted on May 4 of three counts of making a false or fraudulent statement to the Internal Revenue Service (IRS) on his tax returns and one count of failure to file a report of a Foreign Bank Account (FBAR).

Evidence presented at the trial established that Xiao opened a foreign bank account at Ping An Bank in China in 2016 and received monthly deposits into the account from Shenzhenalo University in Shenzhen, China, from 2016 to 2020. Some of the funds were linked to additional sources in China. By 2020, Xiao had accumulated more than $100,000 in the Chinese account, according to
U.S. Attorney’s Office Southern District of Illinois.

U.S. taxpayers are required to report any foreign bank account on their federal income tax returns. In addition, those with funds in foreign accounts totaling more than $10,000 at any time during a given year are required to file an FBAR with the Treasury Department.

The court dismissed two additional counts against Xiao that charged wire fraud. Xiao was found not guilty of a false statement charge. Those three charges were all related to alleged
fraud in connection with a grant Xiao obtained from the National Science Foundation.

The charge of making and subscribing false income tax returns provides for a sentence of up to three years in prison, one year of supervised release and a $100,000 fine. The charge of failing
to file an FBAR provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000, according to the U.S. Attorney’s Office Southern District of Illinois.

Sentencing is set before the Honorable Staci M. Yandle on August 11.

The Federal Bureau of Investigation-Springfield Field Office and the Internal Revenue Service—Criminal Investigations investigated this case. Assistant U.S. Attorneys Peter Reed and Scott Verseman of the U.S. Attorney’s Office for the Southern District of Illinois and Trial Attorney Derek Shugert of the National Security Division of the Department of Justice prosecuted the case.

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