SoCal man sold $80 million in cannabis products and didn't report it, state prosecutors say
Los Angeles Times
Thu, May 14
Key Points
- Pin Hsien Hsu operated about 30 unlicensed marijuana dispensaries across Los Angeles, Orange, and San Bernardino counties from April 2019 to November 2022, allegedly evading $7.1 million in taxes and failing to report approximately $80 million in sales.
- State prosecutors charged Hsu with 66 felony counts, including failing to file sales tax returns, conducting business without permits, money laundering, and a white-collar crime enhancement for tax losses exceeding $500,000.
- Investigators seized $2.2 million in cash, 125 pounds of cannabis products, 62 electronic devices, and 14 boxes of evidence during search warrants at Hsu’s dispensaries, along with banking records showing significant monthly deposits from 2019 to 2023.
- Hsu faces over 50 years in state prison if convicted on all charges, while California’s Attorney General emphasized the broader impact of tax evasion on funding essential public services like schools and healthcare.
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." It is not clear if Hsu has entered a plea or if he is being represented by an attorney. He could not immediately be reached for comment on Thursday. 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.