The owner of a Northeast Baltimore liquor store was indicted by a federal grand jury Tuesday on suspicion of making strategic cash deposits totaling more than $1 million in order to avoid paying taxes, prosecutors said.
For more than two years, Kwang Sik Kim, 56, of Clarksville made more than 100 deposits at local banks in amounts less than $10,000 in order to avoid a federal reporting requirement, according to a statement Tuesday from Maryland's U.S. Attorney's Office. Kim is the owner of Limetree Liquors, in the 1700 block of E. Northern Parkway in Baltimore.
Financial institutions must report cash deposits over $10,000 to the Internal Revenue Service.
By breaking deposits up among bank accounts and making deposits on successive days, prosecutors say, Kim avoided the mandate.
From March 2009 until June 2011, Kim made deposits adding up to $1,198,000 that skirted the reporting requirement, said prosecutors, who argue that evading the reporting requirement allowed Kim to obscure his taxable income.
For the tax years 2008, 2009 and 2010, Kim underreported his income to the IRS, by more than $200,000 each year, according to the government.
Kim faces at most 10 years in prison if he is found guilty of structuring deposits to avoid taxes.
An initial appearance in Baltimore's federal district court has not yet been scheduled.