A Durango man pleaded guilty to tax evasion this week in federal court in New Mexico.
Hak Ghun, 62, is facing 12 to 18 months in prison after signing a plea agreement with the U.S. Attorneys Office. He also will be required to pay $249,567 in restitution to the Internal Revenue Service.
Ghun was charged April 10 with evading $367,809 in federal taxes during tax years 2005, 2006 and 2007, according to a news release issued Thursday by the U.S. Attorneys Office in New Mexico.
Ghun was the chief executive officer of BCDS Manufacturing Inc., based in Shiprock, N.M., which provides reverse-osmosis systems.
The Navajo Nation in 2003 and 2004 invested economic-development funds in BCDS and became the majority owner of the company, the indictment says. In 2006, the Navajo Nation obtained a $2.2 million loan to expand the BCDS facility in Shiprock.
Ghun was accused of spending $1.1 million in BCDS funds for his personal expenses. He also admitted to using the funds to make support payments to his ex-wife and paying for luxury cars, hotel stays and casino gambling, according to the plea agreement.
He also is suspected of evading his personal tax obligations on those funds by concealing his conduct from BCDSs corporate accountant and by filing false corporate tax returns on behalf of BCDS.