Four members of an extended family in Virginia and Maryland were charged Tuesday with concealing from federal tax authorities $30 million netted from “flipping” hundreds of foreclosed homes.
Husband and wife Thanh Hoang, 62, and Minh-Vu Hoang, 56, and Minh-Vu Hoang’s sister, Van Thanh Vu, 53, all of Bethesda, were arrested Tuesday after being indicted by a federal grand jury May 28 on charges of tax evasion, money laundering and concealing assets from a bankruptcy court, U.S. Attorney for the District of Maryland Rod Rosenstein said. Thanh Vu’s ex-husband, Hai Duc Ngo, 59, of Woodbridge, Va., was also charged with a related crime.
“The indictment alleges that the defendants purchased many foreclosed homes, flipped them quickly to substitute purchasers and concealed their income and assets from the IRS and creditors,” Rosenstein said.
Between 2000 and 2005, the Hoangs purchased hundreds of foreclosed homes in Prince George’s and Montgomery counties from auctions, selling most of them within a few months often at profits of more than $100,000, according to the indictment.
All four defendants formed business entities, including 15 general partnerships and limited liability corporations, to allegedly conceal their profits.
On multiple occasions, the Hoangs transferred foreclosed homes to “substitute purchasers,” causing public records to show the owner of the foreclosed home to be selling the property to someone other than themselves, according to the indictment. They also set up escrow accounts to allegedly hide their financial interests.
After six years of running their scheme and paying no income taxes, the Hoangs and Thanh Vu each filed separate, voluntary bankruptcy petitions in which they omitted much of their financial dealings and falsified petitions, the indictment says. In one affidavit, Duc Ngo falsely claimed all funds in a particular business were his, according to the indictment.
The defendants are also charged with using third-party bank accounts to deposit money from property sales and then spending the money on personal expenses, such as American Express bills.
All four defendants have been released on bail.
