SoCal man sold $80 million in cannabis products and didn't report it, state prosecutors say

"A man who operated unlicensed marijuana dispensaries across Southern California is facing dozens of felony charges for evading $7.1 million in taxes, according to state prosecutors. Prosecutors allege that between April 2019 and November 2022, Pin Hsien Hsu, 46, operated about 30 unlicensed cannabis dispensaries in Los Angeles, Orange and San Bernardino counties, failed to file sales tax returns and didn't report about $80 million in sales."

""Tax evasion is not a victimless crime," Atty. Gen. Rob Bonta said during a news conference on Wednesday. "When someone intentionally cheats the system and refuses to pay what they legally owe the consequences are felt by all of us. That's money that should be going towards schools, towards public safety, towards transportation and healthcare and other essential services Californians rely on every single day.""

"Investigators executed search warrants at the businesses and seized about $2.2 million in cash, 125 pounds of cannabis products including plastic bags stuffed with marijuana, 62 electronic devices and 14 boxes of related evidence, according to the attorney general's office. A review of accounts at Wells Fargo and Bank of America showed deposits that exceeded $25,000 each month between January 2019 and February 2023, according to the criminal complaint."

"Prosecutors charged Hsu with 66 counts, including failing to file a sales tax return, engaging in business without a permit and money laundering. Hsu is also facing a white collar crime enhancement alleging tax losses of more than $500,000, according to the complaint. If convicted of all charges, he faces more than 50 years in state prison."

A man identified as Pin Hsien Hsu faces dozens of felony charges alleging he operated roughly 30 unlicensed marijuana dispensaries across Los Angeles, Orange, and San Bernardino counties between April 2019 and November 2022. Prosecutors allege he failed to file sales tax returns and did not report about $80 million in sales, resulting in alleged tax evasion of $7.1 million. Investigators executed search warrants at the businesses and seized about $2.2 million in cash, 125 pounds of cannabis products, electronic devices, and related evidence. Bank account reviews showed deposits exceeding $25,000 each month from January 2019 to February 2023. Charges include failing to file sales tax returns, operating without a permit, and money laundering, with a white collar enhancement alleging tax losses over $500,000. Conviction on all counts could lead to more than 50 years in state prison.

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