A Waipahu basil farmer admitted Friday that he earned $957,382 in 2010 from basil sales rather than the $310,559 he reported on his federal income tax return.
Xiang Ping Song, 56, pleaded guilty in U.S. District Court to making a false statement on his federal tax return. In exchange for his guilty plea, the government has agreed to drop a forfeiture claim, a charge for making a false statement on his 2009 tax return and another charge for withdrawing $441,566 from his bank accounts over a 12-month period in amounts less than $10,000 to avoid mandatory reporting requirements.
Song reported on his 2009 income tax return that he earned $149,000 when his actual income was $341,174.
As part of his plea deal, Song has agreed to pay the Internal Revenue Service the $257,939 in taxes he owes for 2009 and 2010 and pay the state of Hawaii $80,535 in state income and excise taxes he owes for the same period.
He faces a maximum three-year prison term at sentencing in August. And because he is not a U.S. citizen, he also faces deportation after he completes his sentence.
Song was already facing deportation in an immigration case when he was arrested and charged in February 2015 with making false statements on his tax returns and structuring his bank withdrawals.
He entered the U.S. in August 2005 on a three-month visitor visa with a passport that contained his brother’s biographical information but his picture. In February 2006 he applied for political asylum, claiming that he was persecuted in China for being a Falun Gong practitioner and feared further persecution if he returned.
At a 2007 immigration hearing, Song admitted that he stayed in the U.S. longer than his entry visa authorized and that he was eligible for deportation. An immigration judge rejected his asylum application in 2010 and ordered his deportation.
The judge found Song failed to establish that he had been persecuted in China for his Falun Gong membership or practice, did not provide sufficient evidence to support his fear of future persecution and failed to show active participation in a Falun Gong group in the U.S. which would draw the Chinese government’s attention to him.
Song took his case to the Board of Immigration Appeals, which in 2012 upheld the immigration judge’s findings that Song gave inconsistent testimony and weak and vague responses to questions. Song appealed to the 9th U.S. Circuit Court of Appeals, which in February upheld the board’s decision.