Overview

A cannabis retailer has been charged with failing to pay $7.1 million in sales tax across three counties in Southern California. Pin Hsien Hsu, who allegedly ran numerous unlicensed dispensaries, faces a total of 66 charges related to tax evasion and operating without the necessary permits.

Key details

  • The charges against Pin Hsien Hsu include multiple counts of failing to file a sales tax return.
  • Hsu allegedly operated about 30 unlicensed cannabis dispensaries from April 2019 to December 2022.
  • These dispensaries were located in Los Angeles, Orange, and San Bernardino counties.
  • Authorities claim Hsu failed to report over $80 million in sales.
  • The total amount of sales tax he is accused of evading is approximately $7.1 million.
  • All dispensaries operated by Hsu did not charge customers sales tax.
  • The storefronts had names like High Tide Church, Fullerton Fire House, and Best of Buddha.
  • State authorities seized about $2.2 million in cash during the investigation.
  • Additionally, 125 pounds of untaxed cannabis products and 62 electronic devices were confiscated.
  • The investigation began in 2020 during an enforcement operation targeting illicit dispensaries in San Bernardino County.
  • A cloud-based point-of-sale system was reportedly used to facilitate illegal sales.
  • The operation was described as highly organized, employing several thousand individuals.

Context

California Attorney General Rob Bonta emphasized that tax evasion is a crime that affects all citizens, as the uncollected taxes could have funded essential public services.

What happens next

Hsu will face legal proceedings regarding the 66 charges filed against him, which include serious allegations of tax evasion and operating without permits.

What we don't know yet

Details regarding Hsu's current legal representation and the timeline for upcoming court dates have not been confirmed.