Two local Madison liquor stores were doing better than anyone knew, including the IRS, which is why Hyungirl Lee, owner of both Riley's Wines of the World, 402 W. Gorham St., and Vineyard Liquor, 626 University Ave., pleaded guilty in federal court Tuesday to underreporting his income to by nearly half a million dollars from 1994 to 1997.
An IRS audit of Lee's 12 bank accounts showed he had $12.4 million worth of deposits, far in excess of the $5.26 million he reported to the IRS, Assistant U.S. Attorney Daniel Graber said.
According to Graber, Lee used the some of the money to build a $1 million house in 1994.
As part of pleading guilty to one year of tax evasion, Lee will now be forced to pay a $50,000 fine and could face civil tax penalties in the future.
Lee, who was released on bail, could be incarcerated for up to three years with three years of probation following if sentenced to the maximum penalty by the federal court.
