LA HABRA : Restaurant Owner Indicted in IRS Case

The owner of an Arby’s Restaurant here has been indicted for allegedly paying an Internal Revenue Service agent $10,000 to erase $100,000 in taxes, penalties and interest.

The five-count indictment, announced Monday by federal officials, was filed in Los Angeles against David Chiang, 41, the owner and president of East Hill Management Corp., doing business as Arby’s Restaurant.

From 1989 through 1993, East Hill owed the IRS more than $100,000 in taxes, according to court papers, and late last year the IRS filed federal tax liens against East Hill Management.

The indictment alleges that Chiang met with an IRS agent in October and offered him $10,000 to eliminate the tax debt. During the ensuing investigation, Chiang paid the agent four cash installments that totaled $3,450, the indictment alleges.

Each of the installments represented one criminal count and the overall $10,000 bribe represents the fifth count, said Assistant U.S. Atty. Nathan J. Hochman.

Chiang was arrested and jailed last week but was freed after posting $25,000 bail.

If convicted, Chiang faces 75 years in prison and a $1.25-million fine.