Comments on the Article blog are now OFF! If you wish to leave feedback or your opinion of an article individual threads will be created in the Dobizo Community for further discussion. Go to discussion by Clicking Here Now

Raymond Chu the owner of a sewing contracting company by the name of Divine Couture that does work for couture companies, pled guilty to charges that he was involved in a $480,000 tax evasion scam earlier this month.

According to court documents filed in a Manhattan federal court the period lasted from 2002-2005. Now this blog is about teaching how to start a clothing line not how to evade taxes so the following is for informational purposes only.

Raymond Chu cashed checks through a secondary service (check cashiers) instead of depositing revenue into a bank account during the above period of time. Instead of filing taxes on money earned he would use cash to pay wages to workers without social security or any income tax being withheld from the cash earned during each period. The complaint said that as part of the scheme Chu asked some customers to issue checks of less than $10,000 to Divine Couture. I read that any check cashed over $10,000 is automatically investigated by the IRS so that is probably why Raymond asked customers to issue any check below that amount to him personally.

Raymond Chu faces up to 5 years in jail also three years of supervised release, a fine of $250,000, and the prosecution court cost.

Popularity: 1% [?]

Want To Learn How To Start A Clothing Line From a proven fashion industry professional? If so Click Here to take a listen 100% Free to how you can succeed in the fashion industry from Ceo's of million dollar apparel industry businesses.