Polaris owner pleads guilty to tax evasion
Tina Yi, owner of the former Polaris Hotel and Bar, pleaded guilty last week to federal charges of evading taxes on income she earned from the business.
Yi, now living in Anchorage, was the sole owner and operator of SJ Investment LLC, a hotel, bar and liquor store in Nome, that did business as Polaris HBL.
According to the Department of Justice, Yi started the business in April 2007 and operated it until October 31, 2017, when the hotel and bar were destroyed in a fire.
According to the charges, Yi kept two sets of financial records from 2014 to 2018. One accurately captured SJ Investment’s income and expenses, and one that understated the business’s income. Yi provided the false records to her accountant to prepare her tax returns. As a result, her 2014 through 2018 tax returns were all false.
A grand jury indicted Yi in November 2022 on five counts for tax evasion and five counts for filing false tax returns that underreported income from SJ Investment LLC.
The indictment document detailed allegations that Yi evaded federal income taxes and filed false personal tax returns.
Yi owed the IRS over $550,000 in evaded tax payments.
At the time, she also owed the City of Nome property taxes to the tune of $23,537 but according to City Clerk Dan Grimmer those debts were all paid off in 2023.
On November 2, 2022, Yi entered not guilty pleas during her arraignment.
Last week, on Wednesday, July 3, she changed her plea to guilty.
According to the Dept. of Justice, Yi is scheduled to be sentenced on Oct. 11, and faces a maximum penalty of five years in prison.
She also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney S. Lane Tucker for the District of Alaska made the announcement.
IRS Criminal Investigation was investigating the case.
Trial Attorney John C. Gerardi of the Tax Division and Assistant U.S. Attorney Tom Bradley for the District of Alaska are prosecuting the case.