A Southern California man, Pin Hsien Hsu, has been arrested and charged with evading $7.1 million in state sales tax after allegedly hiding $80 million in contraband marijuana sales. [1]
The Allegations
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- Massive Operation: California Attorney General Rob Bonta announced that the 46-year-old suspect operated a network of roughly 30 unlicensed, illegal cannabis dispensaries.
- Jurisdiction: The illicit shops spanned Los Angeles, Orange, and San Bernardino counties between April 2019 and November 2022.
- Tax Fraud: Hsu allegedly failed to file sales tax returns entirely, withholding mandatory funds from the California Department of Tax and Fee Administration.
- Large Deposits: A review of corporate accounts at Wells Fargo and Bank of America revealed consistent monthly deposits exceeding $25,000 over a four-year period. [1, 2, 3]
Evidence Seized
State investigators executed search warrants across the illegal operations, recovering substantial evidence: [1]
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- $2.2 million in physical cash
- 125 pounds of illegal cannabis products
- 62 electronic devices
- 14 boxes of physical business records [1]
Criminal Charges
The state filed a formal complaint in the Sacramento County Superior Court. Hsu faces 66 felony counts, which include: [1, 2]
If convicted on all counts, the suspect faces more than 50 years in state prison.
