Mountainside Man Admits Concealing $4M in Receipts

A Mountainside man admitted Tuesday to concealing nearly $4 million in business receipts from his company, the U.S. Attorney's Office said.

Yuxin Xie, 59, pleaded guilty to one count of tax evasion in front of U.S. District Judge Kevin McNulty in Newark federal court.

According to U.S. Attorney Paul J. Fishman, Xie purchased diabetic test strips from numerous suppliers between 2006 and 2010 for his company, YX Enterprises. Xie then re-packaged and sold the items to wholesale pharmaceutical and medical product distribution companies, Fishman said.

Customer payments were deposited into 11 different bank accounts at three different banks, Fishman said.

"YX Enterprises was not a registered corporation and any income received by YX Enterprises should have been reported on Xie’s tax returns," Fishman said.

However, Xie's tax returns contained gross receipts of less than $10,000 for 2006, 2007 and 2008 and did not include any reference to YX Enterprises for 2009 and 2010, Fishman said.

YX Enterprises received $3,984,508 in business receipts during the five-year period.

While Xie pleaded guilty to just the tax evasion for the 2009 year, his plea agreement requires him to admit to the evasion during all five years, Fishman said.

The tax loss is between $200,000 and $400,000. His sentencing is scheduled for Monday, July 8.

Xie faces up to five years in prison and a $250,000 fine or twice his gain from the offense, police said. Sentencing will be Oct. 23.