Man investigated for money laundering and tax evasion
Posted: January 23, 2013
The Winchester Star
WINCHESTER — A local businessman who was arrested in November for smuggling cigarettes is now under investigation for money laundering and tax evasion.
Xue Wen Guan, 53, of Winchester, has yet to be charged with either of the latter crimes, according to Frederick County Sheriff’s Office Capt. Allen Sibert.
He and two other local men were charged with one count each of possession of contraband cigarettes with intent to distribute.
They were caught after allegedly buying large quantities of cigarettes from a local Sheetz convenience store.
During that investigation, a search warrant was executed at Guan’s business, Guan’s Garden — a Chinese restaurant located at 156 Market St. in Winchester.
During the search, Investigators N.B. Spence and R.D. Ellinger recovered bank records, sales receipts and a ledger belonging to the restaurant, according to one of two warrants filed Tuesday in Frederick County Circuit Court.
“Also during the search, over 300 cartons of cigarettes and large sums of cash in $20 denominations were recovered,” the warrant states. “The large sum of cigarettes and cash are consistent with cigarette smuggling and money laundering.”
A search also was conducted of Guan’s residence at 132 Paradise Court in Stephens City.
During an examination of records and after consulting a Virginia Department of Taxation criminal investigator, it appears that Guan’s Garden recorded gross sales of around $24,000 in October.
“[The tax investigator] reports that it appears that Guan’s Garden underreported gross sales for the month of Oct. 2012 by $9,000-$10,000,” the warrant reads. “Additional examination of the ledger has found that it appears that there is a history of underreporting gross sales to the Virginia Department of Taxation over the past year.”
The case remains under investigation, Sibert said.
— Contact Melissa Boughton at email@example.com