Date: July 14, 2025
Contact: newsroom@ci.irs.gov
Seattle, WA — A Seattle real estate owner was convicted late last week in U.S. District Court in Seattle of six counts of tax evasion and six counts of making false tax returns, announced Acting U.S. Attorney Teal Luthy Miller. Steven T. Loo will be sentenced by U.S. District Judge Lauren King on Oct. 9, 2025.
According to records in the case and testimony at trial, Loo had an ownership interest in, and operated multiple commercial real estate properties, in western Washington and California. Loo hired property management companies to manage the properties. Loo had the property management companies send profits from the properties to two bank accounts he controlled. Loo spent this money for his benefit and that of his family and friends, and also re-invested funds in various businesses he controlled. However, Loo did not declare that income -- over $4.7 million -- on his tax returns. Loo used shell companies and repeated transfers of funds to conceal the income from the IRS.
At trial, the government presented evidence detailing the eight properties operated by Loo via various limited liability companies (LLCs). The income from the LLCs was funneled into bank accounts associated with two specific inactive entities that were established in Washington in 1999. Loo did not report this income to the IRS. Loo failed to inform his tax return preparer of these funds that were income from his properties.
In closing arguments Assistant United States Attorney Sean Waite told the jury, “Mr. Loo was strategic - he was deceptive – and he was incredibly profitable…. This isn’t a mistake. This isn’t forgetfulness. This isn’t sloppiness. This is strategic. It is deceptive. And its willful…. It’s criminal. Mr. Loo made 4.7 million dollars. He reported negative income. That feels wrong because it is wrong. No one wants to pay taxes, but nurses, firefighters, and teachers all pay them. Mr. Loo needs to pay his share well.”
The jury deliberated about 7 hours before finding Loo guilty of the six counts of tax evasion and six counts of making and subscribing to a false tax return.
Each count of tax evasion is punishable by up to five years of imprisonment. Making and subscribing to a false tax retuning is punishable by up to three years of imprisonment. The actual sentence will be determined by Judge King after considering the sentencing guidelines and other statutory factors.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorneys Mike Dion and Sean Waite for the Western District of Washington and Trial Attorney Regina Jeon of the Department of Justice Tax Division.
IRS Criminal Investigation (IRS-CI) is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate. The agency has 19 field offices located across the U.S. and 14 attaché posts abroad.