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3 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW Neighbors evacuated in southwest Medford SWAT standoff ... Human bone found northwest of Shady Cove ... Costly repairs may force Jacksonville Highway Water District to dissolve ... Neighbors evacuated in southwest Medford SWAT standoff ... Human bone found northwest of Shady Cove ... Costly repairs may force Jacksonville Highway Water District to dissolve ... Medford broker admits to federal crime Fung agrees to $1.1 million in restitution, but still faces possible jail time in fraud case A prominent Medford commercial real estate broker has agreed to pay $1.1 million in restitution and could face jail time for preparing fraudulent tax documents for clients in the Bay Area, according to the U.S. Attorney's Office. By chris conrad MailTribune.com By chris conrad Posted Sep. 16, 2011 @ 12:01 am Updated Sep 16, 2011 at 2:35 AM By chris conrad Posted Sep. 16, 2011 @ 12:01 am Updated Sep 16, 2011 at 2:35 AM » Social News p bs:newslist StartDate="20121121" EndDate="p bs:datecalc Months="3"" DateSort="1" UseObjects="1" ObjectClass="81" Taxonomywords="2325,665" ExactTaxonomyMatch="1" Image="1" Count="4" --> A prominent Medford commercial real estate broker has agreed to pay $1.1 million in restitution and could face jail time for preparing fraudulent tax documents for clients in the Bay Area, according to the U.S. Attorney's Office. Samuel S. Fung, 56, has pleaded guilty to conspiracy to defraud the United States by impeding the Internal Revenue Service. The case against him stems from crimes Fung committed while living in San Jose, Calif., between 1997 and 2006. He moved to Medford in 2007. Fung has been a major player in the local commercial real estate scene in recent years. In 2007, Fung opened Oregon Commercial, which provides leasing services and brokers commercial real estate transactions. In 2008, Fung helped broker the land deal that brought Amy's Kitchen Inc. to White City and the Ramada Hotel & Convention Center to Medford. According to his plea agreement, Fung prepared at least 65 fraudulent income tax returns for his clients in California. In the returns, Fung attempted to hide taxable assets and conceal portions of his clients' income from the IRS. When these returns were then audited by the IRS, Fung told the clients that he would fight the agency on their behalf. "I represented (to the client) that the IRS was aggressively pursuing, auditing and penalizing individuals" who were under investigation for possible tax fraud, Fung said in his plea agreement. Fung then directed his clients to his business partner and co-conspirator, who demanded a fee for his services, according to officials with the U.S. Attorney's Office based in San Jose. Fung took a cut of the fee, which was up to $10,000 in some cases, officials said. As part of the scheme, Fung and his partner, Eric Aaron Lighter, 59, helped clients establish fraudulent trusts and corporations to hide assets from the government. In his signed plea agreement, Fung said he "provided false and fraudulent advice to clients that the programs we promoted were legal." As a criminal case was brewing against Fung, he contacted his clients and threatened to turn them into the IRS if they testified against him and Lighter, the agreement said. "I knowingly attempted to intimidate, threaten, and corruptly persuade (a client) with the intent to influence or prevent (the client's) testimony," Fung said in the plea agreement. Fung and Lighter were indicted in federal court in March 2009 on charges of conspiracy to defraud the U.S., aiding and assisting in the preparation of false tax returns, wire fraud, conspiracy to commit wire fraud, blackmail, witness tampering and conspiracy to commit blackmail and witness tampering. Lighter has pleaded not guilty to the charges and faces an Oct. 4 trial in San Jose, according to the Hawaii Reporter, based in Honolulu. On Tuesday, Fung pleaded guilty to the one count of conspiracy to defraud the U.S. and will appear before a federal judge at a later date to be sentenced. The restitution will be split between the clients and the IRS. The maximum penalty for conspiracy to defraud the U.S. is five years in prison, according to the U.S. Attorney's Office. "He will probably get jail time, but we don't know how much," said IRS Special Agent Arlette Lee. When contacted by phone Wednesday night, Fung would not acknowledge his participation in the case. He did not return phone calls seeking further comment Thursday night. In 2010, Fung received a Certified Commercial Investment Member Transaction of the Year Award from the Oregon/S.W. Washington CCIM chapter. His award was for brokering a deal to bring the United Rental property to Allied Building Products Corp. at 3630 Crater Lake Ave. in Medford. Fung also received the award previously for the Amy's Kitchen and the Ramada Hotel & Convention Center transactions. Reach reporter Chris Conrad at 541-776-4471 or by email at [email protected]. By chris conrad MailTribune.com By chris conrad Posted Sep. 16, 2011 @ 12:01 am Updated Sep 16, 2011 at 2:35 AM » Comment or view comments Terms of Service /* $( document ).ready(function() { // Jquery mobile is trying to style the button and leaving a blank gry button on top of a white button $("#viafouracoms .vf-comment-controls li.vf-right").html(' Submit '); });*/ » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. 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