Jeffrey P. Chernick
Chernick admitted using the secret offshore accounts to hide sales commissions he was paid by Hong Kong and Chinese toy makers, thus avoiding U.S. income taxes, according to court papers.
Court records say Chernick went to extraordinary lengths to avoid detection, including hand-carrying checks drawn on the Swiss UBS account from Hong Kong to the United States and setting up a sham $700,000 loan between his Hong Kong company, Simba, and a second Hong Kong entity in order to repatriate funds into the United States to purchase property next to his home in New York.
He faces up to three years in prison and a fine of up to $250,000. He will also have to settle with the IRS on back taxes, penalties, and interest owed.