Everett salesman has to pay $3.4 million in tax fraud case

SEATTLE — An Everett salesman who peddled software that allows businesses to underreport their sales to avoid paying taxes must pay back $3.4 million.

John Yin, 66, worked for Profitek, a British Columbia company that sells point of sales systems to businesses, including restaurants. The company, according to federal prosecutors, designed, marketed and sold revenue-suppression software as an add-on to its point of sale software.

The suppression software, sometimes called a “zapper” program, allows businesses to modify their point of sale database to underreport revenue.

Yin sold the software to dozens of customers over several years. Eight Seattle-area restaurants used the software and underpaid their state and federal taxes by hundreds of thousands of dollars, according to federal prosecutors.

“Revenue Suppression Software represents the modern iteration of old-fashioned skimming,” said Special Agent in Charge Darrell Waldon, of IRS Criminal Investigation, in a press release.

Yin pleaded guilty Friday in U.S. District Court to wire fraud and conspiracy to defraud the government. He is scheduled to be sentenced in February.

The investigation is ongoing. The state Attorney General’s Office is pursuing a criminal case against a Bellevue restaurant accused of using the software to avoid paying nearly $400,000 in state sales tax.

Talk to us

More in Local News

Sherman Pruitt 2020
Edmonds mayor picks Sherman Pruitt to be next police chief

He currently serves as chief of police for the Sauk-Suiattle Police Department near Darrington.

Snohomish County Jail. (Sue Misao / Herald file)
Snohomish County Jail employee charged in drug smuggling

Alexis Wafstet was charged with drug possession. Several inmates were allegedly in on the plot.

Linda Redmon
Snohomish council leader announces early for mayor campaign

City Councilmember Linda Redmon is the first to file in the race. Mayor John Kartak has not said if he will run again.

Break on surface water fee means less money for environment

The Snohomish County Council voted to nix an annual fee increase that funds preservation work.

Pair of Nikes leads to bank robbery arrest in south Everett

The suspect allegedly took $1,000 in cash from a KeyBank. He was found a few blocks away.

Man, 80, who died in hit-and-run near Lynnwood identified

Jung K. Moon was on the sidewalk when he was struck by a pickup truck. The driver has been arrested.

Deputies: Armed man dressed as cop attacks man near Everett

The suspect allegedly wore police badges and aimed a gun at a man after pushing him to the ground.

Sarah Calvo pours icing on to a cinnamon roll at the Maltby Cafe while Kylie King checks take out orders on Thursday, Dec. 3, 2020 in Maltby, Washington. A GoFundMe fundraising page continues to grow, raising more than $80,000 from 1,200 people in just a few days. Owners Tana Baumler and Sandra Albright thought they were going to closed before the website donations made them pause their decision. (Andy Bronson / The Herald)
Miracle in Maltby: Community support saves small-town cafe

Owners of the Maltby Cafe feared closure, but a wave of business and donations has thwarted the end.

16,000 fentanyl pills, pounds of meth, heroin seized in bust

Eight suspects were indicted in U.S. District Court in Seattle, including five from Snohomish County.

Most Read